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HomeMy WebLinkAbout09-05-2018 Agenda BackupCITY OF SAN BERNARDINO AGENDA FOR THE JOINT REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WEDNESDAY, SEPTEMBER 5, 2018 4:00 PM – CLOSED SESSION 5:00 PM – OPEN SESSION COUNCIL CHAMBER • 201 NORTH "E" STREET • SAN BERNARDINO, CA 92401 • WWW.SBCITY.ORG Virginia Marquez R. Carey Davis James Mulvihill COUNCIL MEMBER, WARD 1 MAYOR COUNCIL MEMBER, W ARD 7 Benito Barrios Andrea M. Miller COUNCIL MEMBER, WARD 2 CITY MANAGER John Valdivia Gary D. Saenz COUNCIL MEMBER, WARD 3 CITY ATTORNEY Fred Shorett Georgeann “Gigi” Hanna COUNCIL MEMBER, WARD 4 CITY CLERK Henry Nickel David Kennedy COUNCIL MEMBER, WARD 5 CITY TREASURER Bessine L. Richard COUNCIL MEMBER, WARD 6 Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. o Anyone who wishes to speak during public comment or on a particular item will be required to fill out a speaker slip. Speaker slips must be turned in to the City Clerk. You may email your request to speak to publiccomments@sbcity.org prior to 4 p.m. Each request will cover one speaker. Those who wish to speak must submit their own request to be called on by the Mayor. o There is a 3-minute-per-person time limit for all comments, excluding public or quasi-judicial hearings. o Written comment on any item may also be submitted to the City Clerk to be included in the meeting record. It will not be read aloud by the City Clerk. o Those who wish to speak on public or quasi-judicial hearing items will have three minutes for each item. o All who wish to speak, including Council members and staff, need to be recognized by the Mayor or Mayor Pro Tempore before speaking. o Please contact the City Clerk’s Office (384-5002) two working days prior to the meeting for any requests for reasonable accommodation to include interpreters. o All documents for public review are on file with the City Clerk’s Office or may be accessed online by going to www.sbcity.org. o Please turn off or mute your cell phone while the meeting is in session. Joint Regular Meeting Agenda September 5, 2018 Mayor and City Council of the City of San Bernardino Page 2 Printed 08/30/2018 Call to Order Attendee Name Present Absent Late Arrived Council Member, Ward 1 Virginia Marquez    Council Member, Ward 2 Benito Barrios    Council Member, Ward 3 John Valdivia    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Henry Nickel    Council Member, Ward 6 Bessine L. Richard    Council Member, Ward 7 James Mulvihill    Mayor R. Carey Davis    City Clerk Georgeann "Gigi" Hanna    City Attorney Gary D. Saenz    City Manager Andrea M. Miller    CLOSED SESSION PUBLIC COMMENTS ON CLOSED SESSION ITEMS A three-minute limitation shall apply to each member of the public who wishes to address the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to “share” his/her three minutes with any other member of the public. A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1)): In re: City of San Bernardino, U.S. Bankruptcy Court Case No. 6:12-bk-28006 MJ John Wakefield v. City of San Bernardino, WCAB Case Nos. ADJ3044127 and ADJ9367163 Eric Chappell v. City of San Bernardino, WCAB Case Nos. ADJ1978610; ADJ5823506; ADJ8036970; ADJ9385152; and ADJ 9385259 Center for Biological Diversity, et al. v. City of San Bernardino, Case No. CIVDS1706284 B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation – Pursuant to Government Code Section 54956.9(d)(4): Three cases INVOCATION AND PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT Joint Regular Meeting Agenda September 5, 2018 Mayor and City Council of the City of San Bernardino Page 3 Printed 08/30/2018 APPOINTMENT 1. Planning Commission Appointment Recommendation: Approve the appointment of Ms. Elizabeth P. Sanchez to the Planning Commission. PRESENTATION 2. Issuance of Proclamation(s): Proclaim the Month of September 2018 as National Preparedness Month 3. Chamber of Commerce & Local Elected Officials Announcements PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA A three-minute limitation shall apply to each member of the public who wishes to address the Mayor and City Council on any item on the agenda. There is no limit to the number of items that may be discussed within the three-minute time limit. To be called on by the Mayor, please turn in individual speaker slips to the City Clerk by 5:00 p.m. the day of the meeting. If you wish, you may email your speaking request to publiccomments@sbcity.org prior to the beginning of the meeting. Emailed requests to speak will not be accepted from anyone but the person requesting to speak. CONSENT CALENDAR There will be no separate discussion of Consent Calendar items unless a Council member requests that the item be considered in its normal sequence on the agenda. Public comment on Consent Calendar items is limited to three minutes total per person. There is no limit on the items that can be discussed within that time. 4. Waive Full Reading of Resolutions and Ordinances Recommendation: Waive full reading of Resolutions and Ordinances on the agenda dated September 5, 2018. 5. City Council Approval of Commercial and Payroll Checks Recommendation: Approve the commercial and payroll checks for August 2018. 6. Draft Minutes Recommendation: Approve the minutes of the Mayor and City Council Regular Meetings of August 1, 2018 and August 15, 2018. Joint Regular Meeting Agenda September 5, 2018 Mayor and City Council of the City of San Bernardino Page 4 Printed 08/30/2018 7. Amended and Restated Professional Services Agreement between Goldman, Magdalin and Krikes, LLP and the City of San Bernardino Recommendation: Authorize the City Manager to execute the Amended and Restated Professional Services Agreement between Goldman, Magdalin and Krikes (GMK), LLP and the City of San Bernardino, California for workers’ compensation legal services. 8. Award of Construction Contract for Pool Plastering at Various Recreational Facilities - Phase II to Condor, Inc. Recommendation: Adopt Resolution No. 2018-233 of the Mayor and City Council of the City of San Bernardino, California, authorizing the award of a construction contract with Condor, Inc., authorizing the City Manager to execute a contract in the amount of $439,147 for pool plastering at various recreational facilities, authorizing a construction contingency in the amount of $43,915, and authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 9. Award of Construction Contract for City Hall Parking Structure Deck Waterproofing to Angelus Waterproofing and Restoration, Inc. Recommendation: Adopt Resolution No. 2018-242 of the Mayor and City Council of the City of San Bernardino, California, approving a construction contract with Angelus Waterproofing and Restoration, Inc. in the amount of $462,250, authorizing a construction contingency in the amount of $46,225, authorizing the Finance Director to amend FY 2018/19 Adopted Budget by carrying over and transferring remaining FY 2017/18 funds from account number 001-090- 0053-5505 in the amount of $534,000 to a project account to be established, and authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 10. Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing Development Master Agreement Recommendation: Authorize the execution of Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing Development Master Agreement and authorize the City Manager or designee to take any further actions and execute additional documents as necessary to effectuate the agreement. Joint Regular Meeting Agenda September 5, 2018 Mayor and City Council of the City of San Bernardino Page 5 Printed 08/30/2018 11. First Amendment to the Infrastructure Engineers for Staff Augmentation Services Recommendation: Adopt Resolution No. 2018-243 of the Mayor and City Council of the City of San Bernardino, California, authorizing and directing the City Manager to execute the First Amendment to the Consultant Service Agreement with Infrastructure Engineers for Senior Engineer Services and authorizing the Director of Finance to increase the Purchase Order by $200,000. 12. State Library Grant Funding Appropriation Recommendation: Accept three individual grants awards from California State Library (CSL) for library books and literacy totaling $30,000 and authorizing the Director of Finance to amend the FY2018/19 library budget accordingly. 13. Issuance of a Purchase Order to Nixon-Egli Equipment Company for the purchase of one (1) 2019 PB B-4 Patch Truck unit, Mounted on a 2019 F750 Gas Chassis Recommendation: Adopt Resolution No. 2018-245 of the Mayor and City Council of the City of San Bernardino, California, approving Nixon-Egli Equipment Company to purchase one new 2019 PB B-4 Patch Truck unit mounted on a 2019 F-750 Chassis for the City of San Bernardino in the amount of $218,866 and authorizing the Director of Finance to issue a purchase order to Nixon-Egli Equipment Company in the amount not to exceed $218,866. 14. Issuance of a Purchase Order to National Auto Fleet Group for the purchase of two (2) 2018 Ford F Series Super Duty F-150 4WD with Super Crew Cab 6.75 Box Trucks Recommendation: Adopt Resolution No. 2018-246 of the Mayor and City Council of the City of San Bernardino, California, approving National Auto Fleet Group to purchase two (2) 2018 Super Duty Ford F-150 (x1E) XL 4WD Super Cab 6.75 Box trucks for the City of San Bernardino and authorizing the Director of Finance to issue a purchase order to National Auto Fleet Group in the amount not to exceed $64,472. Joint Regular Meeting Agenda September 5, 2018 Mayor and City Council of the City of San Bernardino Page 6 Printed 08/30/2018 15. Issuance of a Purchase Order to National Auto Fleet Group for the purchase of six (6) 2019 Ford F Series Super Duty F-350 4X2 with Crew Cab 6.75 Box Trucks Recommendation: Adopt Resolution No. 2018-247 of the Mayor and City Council of the City of San Bernardino, California, approving the purchase of six (6) new 2019 Super Duty Ford F-350 SRW (W3A) XL 2 WE Crew Cab 6.75 box trucks for the City of San Bernardino in the amount of $187,917 and authorizing the Director of Finance to issue a purchase order to National Auto Fleet Group in the amount not to exceed $187,917. 16. Adopt CDBG Subrecipient Agreement with Neighborhood Partnership Housing Solutions, Inc. and Adopt the Policies and Procedures for Owner Occupied Residential Rehabilitation Program Recommendation: 1. Adopt the CDBG Subrecipient Agreement with Neighborhood Partnership Housing Services, Inc. for a term of one year to replace the existing Vendor Services Agreement, and 2. Adopt the policies and procedures for Owner Occupied Residential Rehabilitation Program. 17. Right-of-Way Acquisition Services Agreement for the Widening of 40th Street between Johnson Street and Electric Avenue Recommendation: Adopt Resolution No. 2018-248 of the Mayor and City Council of the City of San Bernardino, California, approving a Consultant Services Agreement with Paragon Partners, LTD for Right-of-Way Acquisition Services for the widening of 40th Street between Johnson Street and Electric Avenue (SS04-014). 18. Third Amendment to the Engineering Resources of Southern California, Inc. Agreement Recommendation: Adopt Resolution No. 2018-249 of the Mayor and City Council of the City of San Bernardino, California, authorizing and directing the City Manager to execute the Third Amendment to the Consultant Services Agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design services for the widening of 40th Street from Johnson Street to Electric Avenue (SS04- 014). Joint Regular Meeting Agenda September 5, 2018 Mayor and City Council of the City of San Bernardino Page 7 Printed 08/30/2018 19. Basic Compensation Plan for San Bernardino Police Department Recommendation: Adopt Resolution No. 2018-250 of the Mayor and City Council of the City of San Bernardino, California, establishing salaries for the Police Department Ranges P-1 (Police Officer), P-2 (Detective/Corporal), P-3 (Sergeant), P-4 (Lieutenant), P-5 (Captain), P-6 (Assistant Chief), P-7 (Chief), and Law Enforcement Trainee effective August 1, 2018. 20. Memorandum of Understanding with the County of San Bernardino Community Development and Housing Agency for Homeless Management Information System Recommendation: 1. Approve the Memorandum of Understanding (MOU) with the County of San Bernardino Community Development and Housing Agency (CDHA) for the Homeless Management Information System (HMIS), and 2. Authorize the City Manager or her designee to execute a revised MOU should the language be revised by the CDHA, not including substantial changes, in consultation with the City Attorney. 21. Agreement with Joe A. Gonsalves & Son for Legislative Advocacy Services Recommendation: Authorize the City Manager to execute a three-year Professional Services Agreement with the option of two one-year extensions between the City of San Bernardino and Joe A. Gonsalves & Son for Legislative Advocacy Services and authorize the Finance Director to execute a purchase order in an amount not to exceed $84,000 for Fiscal Year 2018/19. 22. Resolution Suspending Special Tax for Special Tax Area 2006-1 and Establishing Tax Rate of Zero Recommendation: Adopt Resolution No. 2018-254 of the Mayor and City Council of the City of San Bernardino, California, suspending imposition of special tax and establishing tax rate of zero for Special Tax Area 2006-1. Joint Regular Meeting Agenda September 5, 2018 Mayor and City Council of the City of San Bernardino Page 8 Printed 08/30/2018 23. Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San Bernardino Municipal Code related to the Regulation of Commercial Cannabis Activities Recommendation: Accept for Final Reading and adopt Ordinance No. MC-1503, an Ordinance of the Mayor and City Council of the City of San Bernardino, California, amending Chapter 5.10 of the San Bernardino Municipal Code related to the Regulation of Commercial Cannabis Activities. STAFF REPORTS 24. First Amendment to the Agreement with Westbound Communications, Inc. for Marketing and Public Relations Services Recommendation: Authorize the City Manager to execute a First Amendment to the Professional Services Agreement with Westbound Communications, Inc. to increase the total compensation by $169,000 for an amount not to exceed $410,000 in FY2018-19, authorize the City Manager or designee to increase the purchase order for a total amount not to exceed $410,000, and authorize the Director of Finance to amend the FY2018-19 budget. 25. Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back to Route 66 Recommendation: Review, discuss, and provide direction in response to the request for a fee waiver in the amount of $39,834 for the San Bernardino Chamber of Commerce Rendezvous Back to Route 66 2018 event, and if necessary, adopt Resolution No. 2018-252 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Service Agreement between the City of San Bernardino and San Bernardino Chamber of Commerce to provide support services for Rendezvous Back to Route 66 2018 event. 26. City of San Bernardino City Wide Events Planning updates for Veterans Day Salute & Parade and Winter Wonderland 2018 Recommendation: Discuss and provide direction related to the Veterans Day Salute & Parade and Winter Wonderland 2018 Events specifically related to Disabled American Veterans. Joint Regular Meeting Agenda September 5, 2018 Mayor and City Council of the City of San Bernardino Page 9 Printed 08/30/2018 PUBLIC HEARING 27. Establish Compensation and Benefits for City-Elected Officials Recommendation: Introduce for first reading Ordinance No. MC-1504 of the Mayor and City Council of the City of San Bernardino, California, adding Chapter 2.82 to the City of San Bernardino Municipal Code establishing compensation and benefits for the City-Elected officials. 28. Resolution of the Mayor and City Council of the City of San Bernardino Pursuant to Section 147(f) of the Internal Revenue Code of 1986 Approving the Issuance of Bonds by the Housing Authority of the County of San Bernardino for the Arrowhead Grove Phase II & III Project Recommendation: Adopt Resolution No. 2018-253 of the Mayor and City Council of the City of San Bernardino, California, pursuant to Section 147(f) of the Internal Revenue Code of 1986 approving the issuance of bonds by the Housing Authority of the County of San Bernardino for the Arrowhead Grove Phase II & III Project. 29. ADJOURNMENT The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, September 19, 2018 in the Council Chamber located at 201 North “E” Street, San Bernardino, California 92401. Closed Session will begin at 4:00 p.m. and Open Session will begin at 5:00 p.m. Joint Regular Meeting Agenda September 5, 2018 Mayor and City Council of the City of San Bernardino Page 10 Printed 08/30/2018 CERTIFICATION OF POSTING AGENDA I, Georgeann “Gigi” Hanna, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the September 5, 2018 regular meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City’s bulletin board located in the breezeway of City Hall, 300 North “D” Street, San Bernardino, California, at the San Bernardino Public Library, and on the City’s website www.ci.san-bernardino.ca.us on Friday, August 31, 2018. I declare under the penalty of perjury that the foregoing is true and correct. Georgeann “Gigi” Hanna, CMC, City Clerk NOTICE: Any member of the public may address this meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item appearing on the agenda by approaching the microphone in the Council Chamber when the item about which the member desires to speak is called and by asking to be recognized. Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to “share” his/her three minutes with any other member of the public. Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code. Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed. Appointment City of San Bernardino Request for Council Action Date: September 5, 2018 To: Honorable Mayor and City Council Members From: John Valdivia, Council Member Third Ward By: Renee Brizuela, Administrative Assistant to City Council Subject: Planning Commission Appointment Recommendation Approve the appointment of Ms. Elizabeth P. Sanchez to the Planning Commission. Background The Planning Commission was established under Municipal Code Chapter 2.22, Ordinance No. MC-1473, and is tasked with advising the Mayor, City Council and City staff on the physical development of the city, including zoning, building, land use and related matters. The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. Mayor, City Council and City Manager Goals and Objectives The proposed commission appointment aligns with Goal Number 5 Improving City Government Operations by implementing the city charter and appointing commissioners to the citizen advisory boards with clearly defined roles. Conclusion Approve the appointment of Ms. Elizabeth P. Sanchez to the Planning Commission. Fiscal Impact None Attachments Attachment 1 – Commission application – Ms. Elizabeth P. Sanchez 1.a Packet Pg. 11 Attachment: Council.Commission Appointment - Elizabeth P. Sanchez (5705 : Planning Commission Appointment) 1.b Packet Pg. 12 Attachment: Council.08-10-2018 - Elizabeth P Sanchez - Ward 3_Redacted (5705 : Planning Commission Appointment) 1.b Packet Pg. 13 Attachment: Council.08-10-2018 - Elizabeth P Sanchez - Ward 3_Redacted (5705 : Planning Commission Appointment) 1.b Packet Pg. 14 Attachment: Council.08-10-2018 - Elizabeth P Sanchez - Ward 3_Redacted (5705 : Planning Commission Appointment) Consent Calendar City of San Bernardino Request for Council Action \ Date: September 5, 2018 To: Honorable Mayor and City Council Members From: Gigi Hanna, City Clerk Subject: Waive Full Reading of Resolutions and Ordinances Recommendation: Waive full reading of Resolutions and Ordinances on the agenda dated September 5, 2018. 3.a Packet Pg. 15 Attachment: Waive Reading.Report_September 5 (5706 : Waive Full Reading of Resolutions and Ordinances) 4.a Packet Pg. 16 Attachment: FN.Commercial Checks Payroll Report Sep 5, 2018 (5707 : City Council Approval of Commercial and Payroll Checks) 2018-2019 Goals and Objectives Approval of the noted check registers for commercial and payroll checks align with Goal No. 6: Operate in a Fiscally Responsible and Business-Like Manner. The Mayor and City Council’s approval of the City’s weekly remittances to third parties promotes transparency of City business with the public. Fiscal Impact Amounts noted in the check registers have no further fiscal impact. Amounts were paid consistent with existing budget authorization and no further budgetary impact is required. Conclusion It is recommended that the attached check registers be approved by the Mayor and City Council. Attachments Attachment 1 – Commercial checks for Register #6 Attachment 2 – Commercial checks for Register #7 Attachment 3 – Commercial checks for Register #8 Attachment 4 – Payroll checks for August 9, 2018 Ward: Synopsis of Previous Council Actions: 4.a Packet Pg. 17 Attachment: FN.Commercial Checks Payroll Report Sep 5, 2018 (5707 : City Council Approval of Commercial and Payroll Checks) 4.bPacket Pg. 18Attachment: FN.Commercial Checks & Payroll. Register #6 (5707 : City Council Approval of Commercial and Payroll Checks) 4.bPacket Pg. 19Attachment: FN.Commercial Checks & Payroll. Register #6 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 20Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 21Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 22Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 23Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 24Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 25Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 26Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 27Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 28Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 29Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 30Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 31Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 32Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 33Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 34Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 35Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 36Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 37Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 38Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 39Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 40Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 41Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 42Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 43Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 44Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 45Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 46Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.cPacket Pg. 47Attachment: FN.Commercial Checks & Payroll. Register #7 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 48Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 49Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 50Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 51Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 52Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 53Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 54Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 55Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 56Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 57Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 58Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 59Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 60Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 61Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 62Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 63Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 64Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 65Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 66Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.dPacket Pg. 67Attachment: FN.Commercial Checks & Payroll. Register #8 (5707 : City Council Approval of Commercial and Payroll Checks) 4.e Packet Pg. 68 Attachment: FN.Payroll Summary Reports BW-15 (5707 : City Council Approval of Commercial and Payroll Checks) Consent Calendar City of San Bernardino Request for Council Action \ Date: September 5, 2018 To: Honorable Mayor and City Council Members From: Gigi Hanna, City Clerk Subject: Draft Minutes Recommendation Approve the minutes of the Mayor and City Council Regular Meetings of August 1, 2018 and August 15, 2018. 5.a Packet Pg. 69 Attachment: Minutes_September 5 (5708 : Draft Minutes) City of San Bernardino 290 North D Street San Bernardino, CA 92401 http://www.sbcity.org Mayor and City Council of the City of San Bernardino Page 1 Printed 8/1/2018 DRAFT MINUTES FOR THE JOINT REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WEDNESDAY, AUGUST 1, 2018 The Joint Regular Adjourned Meeting of the Mayor and City Council of the City of San Bernardino was called to order by Mayor R. Carey Davis at 4:06 P.M., Wednesday, August 1, 2018, in the Council Chamber, 201 North "E" Street, San Bernardino, CA. Call to Order Attendee Name Title Status Arrived Virginia Marquez Council Member, Ward 1 Present 4:06 PM Benito J. Barrios Council Member, Ward 2 Late 4:18 PM John Valdivia Council Member, Ward 3 Late 4:16 PM Fred Shorett Council Member, Ward 4 Present 4:06 PM Henry Nickel Council Member, Ward 5 Late 6:03 PM Bessine L. Richard Council Member, Ward 6 Present 4:06 PM James Mulvihill Council Member, Ward 7 Present 4:06 PM R. Carey Davis Mayor Present 4:06 PM Georgeann "Gigi" Hanna City Clerk Present 4:06 PM Gary D. Saenz City Attorney Present 4:06 PM Andrea Miller City Manager Present 4:06 PM Mayor R. Carey Davis Council Members Virginia Marquez Benito Barrios John Valdivia Fred Shorett Henry Nickel Bessine L. Richard James Mulvihill 5.b Packet Pg. 70 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 2 Printed 8/30/2018 CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1)): In re: City of San Bernardino, U.S. Bankruptcy Court Case No. 6:12 -bk-28006 MJ Redevelopment Agency of the City of San Bernardino v. DMC Investment Holdings, LLC, Los Angeles County Superior Court Case No. BC465755, and Placo San Bernardino, LLC v. City of San Bernardino, et al., Los Angeles County Superior Court Case No. 468955 Committee for Safer Neighborhoods and Schools v. City of San Bernardino, et al., San Bernardino County Superior Court Case No. CIVDS 1819250 B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation – Pursuant to Government Code Section 54956.9(d)(4): City v. Rainbow Investment, Inc. City v. US Bank NA C. PUBLIC EMPLOYEE APPOINTMENT (Pursuant to Government Code Section 54957): City Attorney INVOCATION AND PLEDGE OF ALLEGIANCE The invocation was led by Reverend Pamela Moor, of First Christian Church. The Pledge of Allegiance was led by Roger Jaden Maciel, grandson of City Water Department employee Maria Posada. CLOSED SESSION REPORT City Attorney Saenz reported the following actions took place in Closed Session:  In re: City v. Rainbow Investment, Inc., the Council gave settlement directive by a vote of 4-0, with councilmembers Barrios, Valdivia and Nickel absent.  In re: City v. US Bank NA., the Council gave settlement directive by a vote of 4-0, with councilmembers Barrios, Valdivia and Nickel absent APPOINTMENTS There were no appointments at the meeting. PRESENTATIONS 1. Special Recognition – Mayor’s Youth Academy Internship Recipients The mayor honored two students who had been part of the Youth Academy Internship Program – Neda Chavez and Juan Resendez, students at Middle College High School. 5.b Packet Pg. 71 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 3 Printed 8/30/2018 2. Chamber of Commerce & Local Elected Officials Announcements Colin Strange announced the upcoming events of the Chamber of Commerce. PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA Linda Cooper, San Bernardino, suggested that the city invite people who want to open a business to choose a boarde d up location, renovate them to city standards at their own expense, and then lease the storefront/ property for $100-$200 per month to promote revitalization. Rikke Van Johnson, San Bernardino, invited the council to the 106th birthday party for Emma Shaw on August 11 at Anne Shirrells Park. Luis Ojeda, aka Khan d’Kuhlia, spoke about the clean-up efforts he is leading on Sundays in San Bernardino and said the group of 25-30 volunteers working with him call themselves “We Are the Change San Bernardino Volunteers,” and have cleaned up 24 illegal dump sites of 22 tons of trash. He invited people to join the group and said they could use tools for the clean ups. Ruben Gomez said his group wanted to inspire people to take action on things that are important to them and found Luis Ojeda’s group and have created a Facebook page to promote the work and raise awareness. He thanked Councilmember Shorett for providing doughnuts for the group. Jeanine Nielsen, Daisy’s Hope Foundation, spoke about the creation of the foundation; discussed the mission and concerns of the San Bernardino City Animal Care Foundation, said they had sent an email to city officials about the organization, asked to be included on the Animal Control Commission agenda for an open table discussion, and asked how to best contact city officials. CONSENT CALENDAR Council Member Marquez pulled item 5. The rest of the items were voted on with a single motion. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 3. Waive Full Reading of Resolutions and Ordinances Approved Motion: Waive full reading of Resolutions and Ordinances on the agenda dated August 1, 2018. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 5.b Packet Pg. 72 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 4 Printed 8/30/2018 4. City Council Approval of Commercial and Payroll Checks Approved Motion: Approve the commercial and payroll checks for July 2018. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 5. City Council Approval of Draft Minutes Council member Marques stated that she had made a comment at the previous meeting that she had not spoken to any tow service representatives Approved Motion: Approve the minutes of the Mayor and City Council Regular Meeting of July 18, 2018, with correction. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 6. Commercial Lease with Trans America Auto Logistics, LLC for a Portion of the Parking Area at the Carousel Mall Approved Motion: Adopt the resolution. Reso. 2018-211 Resolution of the Mayor and City Council of the City of San Bernardino, California, approving a Commercial Lease with Trans America Auto Logistics, LLC for an approximately 15.4-acre portion of the western side of the surface parking area of the Carousel Mall Site and authorizing certain related actions. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 5.b Packet Pg. 73 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 5 Printed 8/30/2018 7. Award of Construction Contract for Pavement Rehabilitation at Ten Locations to Matich Corporation Approved Motion: Adopt the resolution. Reso. 2018-199 Resolution of the Mayor and City Council of the City of San Bernardino, California, approving a construction contract with Matich Corporation, in the amount of $2,479,000 and authorizing a construction contingency in the amount of $247,000, for a total contract amount not to exceed $2,726,000; authorizing the Finance Director to amend the FY 2018/19 adopted budget to allocate Measure I Funds to the project; authorizing the City Manager or designee to sign all necessary documents; and authorizing the City Manager to expend the contingency fund, if necessary, to complete the project. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 8. Cooperative Agreement with the County of San Bernardino for Rehabilitation of Sterling Avenue and Base Line Street Approved Motion: Adopt the resolution. Reso. 2018-216 Resolution of the Mayor and City Council of the City of San Bernardino, California, approving a Cooperative Agreement with the County of San Bernardino for Rehabilitation of Sterling Avenue and Base Line Street. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 9. First Amendment to the HF&H Consulting, LLC Agreement Approved Motion: Adopt the resolution. Reso. 2018-218 Resolution of the Mayor and City Council of the City of San Bernardino, California, authorizing and directing the City Manager to execute the First Amendment to th e Consultant Services Agreement with HF&H Consulting, LLC for as- 5.b Packet Pg. 74 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 6 Printed 8/30/2018 needed consulting services related to solid waste collection service rates. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 10. Cooperative Agreement with the City of Highland for Six Joint Projects Approved Motion: Adopt the resolution. Reso. 2018-201 Resolution of the Mayor and City Council of the City of San Bernardino, California, approving a Cooperative Agreement with the City of Highland for Six Joint Projects. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 11. Authorize the Execution of a Vendor Services Agreement and Issue a Purchase Order to NPA Computers, Inc. for System Maintenance Services in an Amount Not to Exceed $108,108 Speaker Dean Cooper Approved Motion: Authorize the City Manager or her designee to execute a Vendor Services Agreement and issue a Purchase Order for system maintenance services with NPA Computers, Inc. in an amount not to exceed $108,108. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 5.b Packet Pg. 75 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 7 Printed 8/30/2018 12. FY 2018/19 Senior Companion Program Grant Funding Appropriation Speaker Shirley Harlan Approved Motion: Adopt the resolution. Reso. 2018-219 Resolution of the Mayor and City Council of the City of San Bernardino, California, ratifying the grant application submittal, accepting the grant award of $287,788, appropriating grant revenue expenditures, and allocating grant match expenditures for the Senior Companion Program (SCP) for the period of July 1, 2018 through June 30, 2019. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 13. FY 2018/19 Senior Nutrition Program Grant Funding – Third Year of a Three Year Grant Award Approved Motion: Adopt the resolution. Reso. 2018-220 Resolution of the Mayor and City Council of the City of San Bernardino, California, ratifying the execution of the third year of a three-year Grant Allocation on County Contract 16-389 with the County of San Bernardino, Department of Aging and Adult Services (DAAS); accepting the grant amount of up to $335,000; appropriating grant expenditures; issuing annual food services and consumable product purchase orders to Sysco Foods, Merit Day, and Smith Distribution; and issuing an annual purchase order to Consulting Health & Nutrition Services for the period of July 1, 2018 through June 30, 2019 for the Senior Nutrition Program. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 5.b Packet Pg. 76 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 8 Printed 8/30/2018 14. Authorize Execution of Vendor Services Agreement and Purchase Order to West Coast Lights & Sirens for Police Vehicle Equipment Approved Motion: Adopt the resolution. Reso. 2018-221 Resolution of the Mayor and City Council of the City of San Bernardino, California, authorizing the execution of a Vendor Services Agreement between the City of San Bernardino and West Coast Lights & Sirens and the issuance of a Purchase Order in the amount of $253,280. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 15. Imposing Liens to Recover Costs for Code Enforcement Abatement Approved Motion: Adopt the resolution. Reso. 2018-222 Resolution of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain real property located within the City of San Bernardino for the costs of public nuisance abatements. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 5.b Packet Pg. 77 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 9 Printed 8/30/2018 16. Health Benefits Plan Year 2019 Approved Motion: Adopt the resolution. Reso. 2018-223 Resolution of the Mayor and City Council of the City of San Bernardino, California, approving employer- paid health benefits contributions for benefit plan year 2019 and election of Mayor and City Council to receive the same benefit plan as the Management/Confidential bargaining unit. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 17. Development Code Amendment/Zoning Map Amendment 17-09 Approved Motion: Adopt the ordinance. MC-1500 Ordinance of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment (Zoning Map Amendment) 17-09 to change the Zoning District Classification from Office Industrial Park (OIP) to Industrial Light (IL) of two (2) parcels (APNs: 0280-142-25 and 36) containing a total of approximately 1.4 acres. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel Staff Reports 18. Boys and Girls Club of San Bernardino – Charter Status Speakers Myesha Hall Thomas Slaughter A. Majadi Dallas Ahola Danny Tillman Vante Walker Evian Goodman Terrance Bradshaw Rosie Rodriguez Dolores Armstead Approved Motion: Continue the item for 60 days to allow the city staff to investigate and to contact the Boys and Girls Club of 5.b Packet Pg. 78 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 10 Printed 8/30/2018 America to see if we can attempt to get the charter back and also allow Majadi’s new 501(c)3 to operate at the facility under a new name but existing lease options. RESULT: ADOPTED [6-0] MOVER: Bessine Richard, Council Member, Ward 6 SECONDER: John Valdivia, Council Member, Ward 3 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 19. Agreement with the Franchise Tax Board for Reciprocal Data Sharing Approved Motion: Adopt the resolution. Reso. 2018-225 Resolution of the Mayor and City Council of the City of San Bernardino, California, authorizing and directing the Director of Finance to execute a reciprocal data sharing agreement with the Franchise Tax Board. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill ABSENT: Nickel 20. Request to Add CMFA Joint Powers Authority as a City of San Bernardino Provider Under the Property Assessed Clean Energy (PACE) Program Approved Motion: Direct staff to conduct research, review and prepare documents necessary to bring the item back to council. RESULT: ADOPTED [7-0] MOVER: Henry Nickel, Council Member, Ward 5 SECONDER: John Valdivia, Council Member, Ward 3 AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill 21. League of CA Cities Mayors & Council Members Executive Forum and Advanced Leadership Workshops – June 27-29, 2018 Council Members Barrios, Nickel and Mulvihill attended the workshop and they provided reports on the experience. No vote was taken on this item. 5.b Packet Pg. 79 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 11 Printed 8/30/2018 22. Municipal Legal Services Approved Motion: Adopt the resolution. Reso. 2018-224 Resolution of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute an Agreement with BB&K for municipal legal services and city attorney services. RESULT: ADOPTED [7-0] MOVER: Fred Shorett, Council Member, Ward 4 SECONDER: Henry Nickel, Council Member, Ward 5 AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill 23. Submission of Two Ballot Measures to the Voters on the Regulation and Taxation of Cannabis Businesses Speakers Mark Estermyer Ben Eilenberg Approved Motion: Adopt the resolutions. Reso. 2018-227 Resolution of the Mayor and City Council of the City of San Bernardino, California, calling a general municipal election to be held in the City of San Bernardino on November 6, 2018 for the purpose of submitting to the voters an ordinance regulating commercial cannabis activities; requesting that the San Bernardino County Board of Supervisors consolidate said election with the State General Election to be conducted the same date and to permit the Registrar of Voters to provide election services; and setting rules for arguments and rebuttals for and against said measure. Reso. 2018-228 Resolution of the Mayor and City Council of the City of San Bernardino, California, calling a general municipal election to be held in the City of San Bernardino on November 6, 2018 for the purpose of submitting to the voters a general tax measure to establish a cannabis business tax; requesting that the San Bernardino County Board of Supervisors consolidate said election with the State General Election to be conducted on the same date and to permit the Registrar of Voters to provide election 5.b Packet Pg. 80 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 12 Printed 8/30/2018 services; and setting rules for arguments and rebuttals for and against said measure. RESULT: ADOPTED [6-1] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Henry Nickel, Council Member, Ward 5 AYES: Marquez, Barrios, Shorett, Nickel, Richard, Mulvihill NOES: Valdivia 24. 2018 City County Conference Update – June 27-28, 2018 Council Member Shorett and Mayor Davis discussed the information they received at the conference. No vote was taken on this item. Public Hearings 25. Business Registration Liens Mayor Davis opened the public hearing and City Clerk Hanna swore in the person who wished to speak on the matter. Speaker Ben Eilenberg Approved Motion: Direct the Director of Finance to remove any properties from the Business Registration Liens List which are resolved prior to the hearing, except for the two mentioned by Eilenberg, and adopt the resolution. Reso. 2018-266 Resolution of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain properties for unpaid business registration taxes and penalties. RESULT: ADOPTED [7-0] MOVER: Henry Nickel, Council Member, Ward 5 SECONDER: Fred Shorett, Council Member, Ward 4 AYES: Marquez, Barrios, Valdivia, Shorett, Nickel, Richard, Mulvihill Quasi-Judicial Hearings 26. Appeal Filed by Pepe’s Towing Services on November 13, 2017 Pursuant to Municipal Code Section 2.64 Speakers Robert Ring, oppose Mike Armada, oppose Brent Anderson, oppose Clay Wooster, oppose 5.b Packet Pg. 81 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 1, 2018 Mayor and City Council of the City of San Bernardino Page 13 Printed 8/30/2018 Misty Lehr, oppose Luis Ojeda, support Michael Schaeffer, applicant’s attorney Approved Motion: Close the hearing and deny the appeal. RESULT: ADOPTED [6-1] MOVER: Fred Shorett, Council Member, Ward 4 SECONDER: Benito Barrios, Council Member, Ward 2 AYES: Marquez, Barrios, Valdivia, Shorett, Richard, Mulvihill NOES: Nickel 27. Adjournment The meeting adjourned at 10:56 p.m. NOTE: The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency is scheduled for 4:00 p.m., Wednesday, August 15, 2018, in the Council Chamber, 201 North “E” Street, San Bernardino, California. By: __________________________ Georgeann “Gigi” Hanna, CMC City Clerk 5.b Packet Pg. 82 Attachment: 08-01-18_Jt__Reg_gh_draft (5708 : Draft Minutes) City of San Bernardino 290 North D Street San Bernardino, CA 92401 http://www.sbcity.org Mayor and City Council of the City of San Bernardino Page 1 Printed 8/15/2018 DRAFT MINUTES FOR THE JOINT REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WEDNESDAY, AUGUST 15, 2018 The Joint Regular Adjourned Meeting of the Mayor and City Council of the City of San Bernardino was called to order by Mayor R. Carey Davis at 4:00 PM, Wednesday, August 15, 2018, in the Council Chamber, 201 North "E" Street, San Bernardino, CA. Attendee Name Title Status Arrived Virginia Marquez Council Member, Ward 1 Present 4:00 PM Benito J. Barrios Council Member, Ward 2 Absent ----------- John Valdivia Council Member, Ward 3 Present 4:00 PM Fred Shorett Council Member, Ward 4 Present 4:00 PM Henry Nickel Council Member, Ward 5 Present 4:30 PM Bessine L. Richard Council Member, Ward 6 Present 4:00 PM James Mulvihill Council Member, Ward 7 Present 4:00 PM R. Carey Davis Mayor Present 4:00 PM Georgeann "Gigi" Hanna City Clerk Present 4:00 PM Sonia Carvalho Senior Assistant City Attorney Present 4:00 PM Andrea Miller City Manager Present 4:00 PM Mayor R. Carey Davis Council Members Virginia Marquez Benito Barrios John Valdivia Fred Shorett Henry Nickel Bessine L. Richard James Mulvihill 5.c Packet Pg. 83 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 15, 2018 Mayor and City Council of the City of San Bernardino Page 2 Printed 8/30/2018 CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1)): In re: City of San Bernardino, U.S. Bankruptcy Court Case No. 6:12-bk-28006 MJ Redevelopment Agency of the City of San Bernardino v. DMC Investment Holdings, LLC, Los Angeles County Superior Court Case No. BC465755, and Placo San Bernardino, LLC v. City of San Bernardino, et al., Los Angeles County Superior Court Case No. 468955 B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION – Initiation of Litigation (Pursuant to Government Code Section 54956.9(d)(4)): One case. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation was led by Pastor Chris Reinhard of Sandals Church. The Pledge of Allegiance was led by Sophie Maust, a fifth grade student at Palm Avenue Elementary School. CLOSED SESSION REPORT Senior Assistant City Attorney Sonia Carvalho reported the following action took place in Closed Session:  In re: CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION – Initiation of Litigation (Pursuant to Government Code Section 54956.9(d)(4)), the council approved a settlement by a vote of 6-1, with council member Barrios absent. APPOINTMENTS 1. Animal Control Commission Approved Motion: Appoint Ms. Angela Halfman to the Animal Control Commission. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Fred Shorett, Council Member, Ward 4 AYES: Marquez, Valdivia, Shorett, Nickel Richard, Mulvihill ABSENT: Barrios 2. Arts & Historical Preservation Commission Approved Motion: Appoint Mr. Hazael Perez Calleros to the Arts & Historical Preservation Commission. 5.c Packet Pg. 84 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 15, 2018 Mayor and City Council of the City of San Bernardino Page 3 Printed 8/30/2018 RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Fred Shorett, Council Member, Ward 4 AYES: Marquez, Valdivia, Shorett, Nickel Richard, Mulvihill ABSENT: Barrios PRESENTATIONS 3. Youth Recognition – Vannesa Ramirez, Sierra High School – Council Member Virginia Marquez Council member Marquez honored Ms. Ramirez for her academic achievements and community service. Senator Michael Morell’s office also recognized her achievements. 4. Youth Recognition – Khushi Patel – Council Member John Valdivia Council member Valdivia honored Ms. Patel for her academic ac hievements, including medals for excellence in math, social science, foreign language, as well as her grade point average and community service. Senator Michael Morell’s office also recognized her achievements. 5. Youth Recognition – Siya Patel – Council Member John Valdivia Council member Valdivia honored the fifth grade student from Cesar Chavez Middle school for her grade average, her perfect attendance, her performance in the science fair and for being awarded the President’s Award at her school. Senator Michael Morell’s office also recognized her achievements. 6. Citizen of the Month – John Shollenberger – Council Member James Mulvihill Council member Mulvihill honored Mr. Shollenberger, a block captain in the seventh ward, for his efforts promoting the city. Senator Michael Morell’s office also recognized his achievements. 7. Chamber of Commerce & Local Elected Officials Announcements Lesley Stevens, board member for the Chamber of Commerce, announced the Chambers activities for the next two weeks. Public Comments for Items Listed and Not Listed on the Agenda Al ice Chow, spoke about efforts she and others have made to organize a non -profit for the benefit of animals in the city. She said there is great interest on the matter. She gave her plans for years one through five, having the shelter become its own entity separate from the police department, use existing funds to improve the shelter and make it safer, have her non-profit recruit and screen volunteers and take over the shelter in year five. She urged that the city and the volunteers work together. Andrea Neyses, spoke about the staffing at the city Animal Shelter. She said her group could adopt animals out of the shelter but that there is no staff left to help and asked that there be more hires. Dave Brown, San Bernardino, spoke about the animal shelter and asked for clarification about the timing of hiring of staff. He said people who want to volunteer are 5.c Packet Pg. 85 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 15, 2018 Mayor and City Council of the City of San Bernardino Page 4 Printed 8/30/2018 being turned away. He asked that the buildings be evaluated and a cost analysis to repair or rebuild the shelter. the need for staffing. Dorothy Garcia, San Bernardino, loaned the book “Our Towns” to the council and Mayor and asked them to read them, and then donate them to the local library. She also spoke about a photography exhibit at the Garcia Center for the Arts. Robert Porter, San Bernardino, asked that the council follow its posted council meeting rules, specifically the one about paying attention to speakers. He also spoke about enticing city workers to live in the city. He said the city is top heavy in terms of salary. Consent Calendar City Manager Miller pulled item 13 so that it would be considered under Staff Reports. The rest of the items were voted on with a single motion. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 8. Waive Full Reading of Resolutions and Ordinances Approved Motion: Waive full reading of Resolutions and Ordinances on t he agenda dated August 15, 2018. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 9. City Council Approval of Commercial and Payroll Checks Approved Motion: Approve the commercial and payroll checks for July 2018. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 5.c Packet Pg. 86 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 15, 2018 Mayor and City Council of the City of San Bernardino Page 5 Printed 8/30/2018 10. Lease Agreement with Akoma Unity Center for Use of the Anne Shirrells Community Center Approved Motion: Adopt the resolution. Reso. 2018-208 Resolution of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Lease Agreement between the City of San Bernardino and Akoma Unity Center for facility use of the Anne Shirrells Community Center at 1367 North California Street, San Bernardino, California from July 1, 2018 through June 30, 2021. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 11. Award of Construction Contract for Street Light Improvement at Broadmoor Blvd to Quality Light and Electrical Approved Motion: Adopt the resolution. Reso. 2018-229 Resolution of the Mayor and City Council of the City of San Bernardino, California, approving a construction contract with Quality Light and Electrical (QLE) in the amount of $528,176.40; authorizing a construction contingency in the amount $52,817.60; authorizing the City Manager or designee to sign all necessary documents; and authorizing the City Manager to expend the contingency fund, if necessary, to complete the project per Special Provisions No. 13219. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 12. Center of Employment Opportunities Agreement Approved Motion: Adopt the resolution. Reso. 2018-230 Resolution of the Mayor and City Council of the City of San Bernardino, California, amending an Agreement between the City of San Bernardino and the Center for Employment 5.c Packet Pg. 87 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 15, 2018 Mayor and City Council of the City of San Bernardino Page 6 Printed 8/30/2018 Opportunities for Citywide landscape maintenance services and weed abatement. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 13. First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code to Reduce the Speed Limit on Arrowhead Avenue Between Highland Avenue and Thompson Place from 45 Mph to 40 Mph This item was removed from the Consent Calendar and considered as part of the Staff Reports. Speakers Catharine Boeck James Mulvihill Approved Motion: Continue the item and direct staff to compare the issues brought up during the meeting to the warrants and return with recommendations based on that comparison, and potential traffic calming measures. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 14. Designate Six Parking Stalls in the Santa Fe Depot Parking Lot for the Exclusive Purpose of Fueling and Parking Zero Emission Vehicles (ZEV) in Accordance with California Vehicle Code Section 22511 Approved Motion: Adopt the resolution. Reso. 2018-231 Resolution of the Mayor and City Council of the City of San Bernardino, California, authorizing the designation of six parking stalls in the Santa Fe Depot parking lot for the exclusive purpose of fueling and parking of Zero Emission Vehicles (ZEV) in accordance with California Vehicle Code Section 22511. 5.c Packet Pg. 88 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 15, 2018 Mayor and City Council of the City of San Bernardino Page 7 Printed 8/30/2018 RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 15. Passenger Amenities Program Agreement with Omnitrans for Current and Future Bus Stops Approved Motion: Adopt the resolution. Reso. 2018-232 Resolution of the Mayor and City Council of the City of San Bernardino, California, authorizing the execution of a Passenger Amenities Program Agreement with Omnitrans for current and future bus stops. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 16. Fifth Amendment to the Agreement for Professional Services with AECOM Technical Services, Inc. for the Design of the Mt. Vernon Avenue Overhead Replacement Project Approved Motion: Adopt the resolution. Reso. 2018-234 Resolution of the Mayor and City Council of the City of San Bernardino, California, approving a Fifth Amendment to the Agreement for Professional Services with AECOM Technical Services, Inc. for the Design of the Mt. Vernon Avenue Overhead Replacement Project, Bridge No. 54C-0066 and amending the FY 2018/19 Budget. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 5.c Packet Pg. 89 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 15, 2018 Mayor and City Council of the City of San Bernardino Page 8 Printed 8/30/2018 17. Five-Year Capital Improvement Program (FY 2018/19 to FY 2022/23) for Measure I Local Expenditures Approved Motion: Adopt the resolution. Reso. 2018-235 Resolution of the Mayor and City Council of the City of San Bernardino, California, approving the Five-Year Capital Improvement Program (FY 2018-2023) for Measure I Local Expenditures. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 18. Subordination of Deed of Trust in Connection with 6044 Gregory Street San Bernardino, California Approved Motion: Adopt the resolution. Reso. 2018-236 Resolution of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino, approving a Subordination of a Deed of Trust in connection with a refinancing of the Senior Mortgage Relating to real property located at 6044 Gregory Street, San Bernardino, California. RESULT: ADOPTED [6-0] MOVER: Jim Mulvihill, Council Member, Ward 7 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios Staff Reports 19. Resolution of Intent to Establish Community Facilities District 2018-1 (Safety Services) of the City of San Bernardino and Levy Special Taxes on Property Within the District There will be a public hearing regarding the formation of CFD 2018-1, and a subsequent election, at the MCC meeting on September 19, 2018 . Approved Motion: Adopt the resolution. Reso. 2018-239 Resolution of the Mayor and City Council of the City of San 5.c Packet Pg. 90 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 15, 2018 Mayor and City Council of the City of San Bernardino Page 9 Printed 8/30/2018 Bernardino, California declaring its intention to establish Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino and authorizing the levy of a special tax on property within the District to pay the costs of providing public safety services. RESULT: ADOPTED [6-0] MOVER: Henry Nickel, Council Member, Ward 5 SECONDER: John Valdivia, Council Member, Ward 3 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 20. Resolutions of Intention to Establish Community Facilities District 2018-2 (Verdemont Ranch) of the City of San Bernardino and to Incur Bonded Indebtedness in an Amount Not to Exceed $5,000,000 for Certain Public Improvements There will be a public hearing regarding the formation of CFD 2018 -2, and a subsequent election, at the MCC meeting on September 19, 2018. Approved Motion: Adopt the resolutions. Reso. 2018-240 Resolution of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to establish Community Facilities District (CFD) No. 2018-2 (Verdemont Ranch) of the City of San Bernardino to authorize the levy of a special tax to pay the cost of acquiring or constructing certain facilities, and to pay debt service on bonded indebtedness, and Reso. 2018-241 Resolution 2. Adopt Resolution No. 2018-241 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to incur bonded indebtedness in an amount not to exceed $5,000,000 within the proposed CFD No. 2018-2 of the City of San Bernardino. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Valdivia, Shorett, Nickel Richard, Mulvihill ABSENT: Brarios 21. Legislative Update Approved Motion: Receive and file the legislative platform; authorize the Mayor, on behalf of the City of San Bernardino, to sign a 5.c Packet Pg. 91 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) Joint Regular Meeting DRAFT Minutes August 15, 2018 Mayor and City Council of the City of San Bernardino Page 10 Printed 8/30/2018 letter of opposition for proposed Assembly Bill 2495 as introduced; and authorize the Mayor, on behalf of the City of San Bernardino, to sign a letter of opposition for proposed Assembly Bill 2681 as introduced. RESULT: ADOPTED [6-0] MOVER: John Valdivia, Council Member, Ward 3 SECONDER: Jim Mulvihill, Council Member, Ward 7 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 22. Ordinance No. MC-1503 -- Amending Chapter 5.10 of the San Bernardino Municipal Code Related to the Regulation of Commercial Cannabis Activities Speaker Ben Eilenberg Approved Motion: Introduce the ordinance. MC-1503 Ordinance of the Mayor and City Council of the City of San Bernardino, California, amending Chapter 5.10 of the San Bernardino Municipal Code related to the Regulation of Commercial Cannabis Activities. RESULT: ADOPTED [6-0] MOVER: Fred Shorett, Council Member, Ward 4 SECONDER: Virginia Marquez, Council Member, Ward 1 AYES: Marquez, Valdivia, Shorett, Nickel, Richard, Mulvihill ABSENT: Barrios 23. ADJOURNMENT The meeting adjourned at 7:03 p.m. The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency is scheduled for 4:00 p.m., Wednesday, September 5, 2018, in the Council Chamber at 201 N. “E” Street, San Bernardino, California. By: __________________________ Georgeann “Gigi” Hanna, CMC City Clerk 5.c Packet Pg. 92 Attachment: 08-15-18_Jt__Reg_gh_draft (5708 : Draft Minutes) 6.a Packet Pg. 93 Attachment: HR.PSA with GMK - Staff Report (5709 : Amended and Restated Professional Services Agreement Between Goldman, Magdalin Discussion Goldman, Magdalin and Krikes (GMK), LLP provides workers’ compensation legal services. The proposed agreement will support the City, including its Water Department, by providing strategic workers’ compensation claim handling to reduce exposure and expenses efficiently and effectively. GMK’s scope of services includes:  Review and/prepare reports, resolutions, orders, agreements, forms, and documents required for Workers’ Compensation matters  Research and interpret Workers’ Compensation laws, court decisions and other legal authorities in order to prepare recommendations  Provide clear and concise legal advice and consultation on an as needed basis as requested and required  Prepare, review and revise staff documents, including, but not limited to initiation of memorandums concerning legal issues on Workers’ Compensation Claims and recommended negotiated claim settlements  Attend City Council closed session meetings to present settlement recommendations on claims  Make appearances at Workers’ Compensation Appeals Board (WCAB)  Attend required meetings with the City Council as requested  Provide related Workers’ Compensation training to both the City and Water Department staff  Experts/knowledge in temporary disability, permanent disability – indemnity and rating, industrial disability/causation, medical consultation, rehabilitation/SJDB Voucher, Agreed Medical Examiner (AME), Panel Qualified Medical Examiner (PQME) and case settlement. The amended and restated agreement, which also covers the San Bernardino Municipal Water Department, is proposed to run through September 8, 2019, with the possibility of a single one-year extension. Additionally, it may be terminated at any time upon thirty (30) days’ written notice. 2018-2019 Goals and Objectives The proposed amended and restated agreement with GMK aligns with Goal No. 5: Improve City Government Operations. GMK will provide Workers’ Compensation legal services to the City, including the San Bernardino Municipal Water Department. The City Attorney’s Office concurs with the recommendation. Fiscal Impact The financial impact to the City for FY 2018/19 is an annual amount not to exceed $300,000 for the City and $65,000 for the Water Department. There is sufficient funding for the City’s expenses in the FY 2018/19 Adopted Budget in account number 678-110- 0057-5503. 8/31/2018 9:28 AM 6.a Packet Pg. 94 Attachment: HR.PSA with GMK - Staff Report (5709 : Amended and Restated Professional Services Agreement Between Goldman, Magdalin Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute the Amended and Restated Professional Services Agreement between the City of San Bernardino and Goldman, Magdalin and Krikes (GMK), LLP. Attachments Attachment 1 Amended and Restated Professional Services Agreement; Exhibit A Scope of Services Ward: On September 11, 2015, the Mayor and City Council adopted Resolution No. 2015-198, approving an agreement with Goldman, Magdalin and Krikes, LLP. 8/31/2018 9:28 AM 6.a Packet Pg. 95 Attachment: HR.PSA with GMK - Staff Report (5709 : Amended and Restated Professional Services Agreement Between Goldman, Magdalin AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT BETWEEN GOLDMAN, MAGDALIN & KRIKES, LLP AND THE CITY OF SAN BERNARDINO This Amended and Restated Professional Services Agreement (the “Agreement”) is entered into this 8th day of September 2018, (Effective Date) by and between the law firm of Goldman, Magdalin & Krikes LLP (“GMK”) and the City of San Bernardino (“City”). GMK and City may individually be referred to as “Party” or collectively referred to as the “Parties.”) WITNESSETH: A. WHEREAS, the Parties entered into a Professional Services Agreement on September 8, 2015 under which GMK provided workers’ compensation legal services to the City (“Original Agreement”); and B. WHEREAS, the City remains in need of workers’ compensation legal services and now wishes to increase the “not-to-exceed” value of the Original Agreement and to include the provision of workers’ compensation legal services to the City’s Municipal Water Department to the scope of services, and C. WHEREAS, it has been determined by the Director of Human Resources that GMK will be representing the following entities and person in workers’ compensation litigation: CITY OF SAN BERNARDINO, including the SAN BERNARDINO MUNICIPAL WATER DEPARTMENT, and GMK represents that it has that degree of specialized expertise contemplated within, inter alia, California Government Code, Section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and D. WHEREAS, GMK is competent, experienced and able to perform said services; and E. WHEREAS, GMK will provide the most advantageous and responsible services. NOW, THEREFORE, the Parties hereto agree as follows: 1.0. SERVICES PROVIDED BY GMK 1.1. Scope of Services. For the remuneration stipulated, Goldman, Magdalin & Krikes (GMK), LLP shall provide the professional services described in the Scope of Services attached hereto as Exhibit “A” and incorporated herein by this reference. 1.2. Professional Practices. All professional services to be provided by GMK pursuant to this Agreement shall be provided in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional attorneys in similar fields and circumstances in accordance with sound professional practices. GMK also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect GMK’s performance of this Agreement. 1.3. Warranty. GMK warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers’ compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. GMK shall indemnify and hold harmless City, 1 6.b Packet Pg. 96 Attachment: HR.PSA with GMK - Attachment 1 - Agreement REVISED (5709 : Amended and Restated Professional Services Agreement Between including its Water Department, from and against all claims, demands, payments, suits, actions, proceedings, and judgements of every nature and description including reasonable attorney’s fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, arising from or related to GMK’s performance under this Agreement. 1.4. Non-discrimination. In performing this Agreement, GMK shall not engage in, nor permit their officers, employees or agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, mental or physical disability, medical condition, marital status, sexual gender or sexual orientation, genetic information, except as permitted by law. Violation of this provision may result in the imposition of penalties. 1.5. Delegation and Assignment. This is a personal service contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of City. GMK may engage a subcontractor(s) as permitted by law and may employ other personnel to perform services contemplated by this Agreement at GMK’s sole cost and expense. 1.6. Conflicts of Interest. During the term of this Agreement, GMK shall at all times maintain a duty of loyalty and a fiduciary duty as to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City. 1.7 City Business Certificate. GMK shall obtain and maintain during the term of this Agreement, a valid City Business Registration Certificate pursuant to Title 5 of the City of San Bernardino Municipal Code and any and all other licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required of GMK to practice their profession, skill or business. 2.0. COMPENSATION AND BILLING 2.1. Compensation. Except as provided herein, GMK shall be paid an amount not to exceed $300,000 for services provided for the City and $65,000 for services provided to the City’s Water Department annually. GMK will be paid at the hourly rates set forth below: Attorney – Partner $160 per hour Attorney - Associate $150 per hour Lien Resolution Specialist $115 per hour Paralegal/Admin. Assistant $85 per hour Effective September 10, 2019 attorneys will be paid at the rate set forth below: Attorney – Partner $165 per hour Attorney - Associate $155 per hour Lien Resolution Specialist $115 per hour Paralegal/Admin. Assistant $85 per hour 2.2. Additional Services. GMK shall not receive compensation for any services provided outside the Scope of Services unless the City, prior to GMK’s performing the additional services, approves such additional services in writing. It is specifically understood that oral 2 6.b Packet Pg. 97 Attachment: HR.PSA with GMK - Attachment 1 - Agreement REVISED (5709 : Amended and Restated Professional Services Agreement Between requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. Bills shall be submitted at least on a monthly basis and no later than the 5th day of each succeeding month. The actual cost for filing fees, telephone charges, photocopying, postage, lodging, mileage and related travel costs shall be itemized when submitted to the City for reimbursement. GMK may include a single charge in an amount not to exceed four percent (4%) of attorney fees in lieu of reimbursement for photocopying, telephone charges, and postage. If attorney fees are charged "portal to portal" (e.g., from office to court and return), then GMK shall not be entitled to reimbursement for mileage and parking fees. GMK shall obtain approval from the City to retain expert witnesses, consultants, and other professionals (not including court reporters) for purposes of the litigation. GMK may, if it chooses, pay the fees and charges of such consultants and seek reimbursement from the City on its periodic statement, or it may forward the consultant's bill to the City with a request that the City pay it directly. Consultants shall not bill the City directly without prior approval of the City's Finance Department. 2.3. Method of Billing. GMK may submit invoices to City for approval. Said invoice shall be based on the total of all GMK’s services which have been completed to City’s sole satisfaction. City shall pay GMK’s invoice within forty-five (45) days from the date City receives said invoice. City will accept charges only for those services first requested by the City. No client development costs are to be included in billings. No continuing education expenses are to be included in billings. Final billing shall be accompanied by copies of the Request for Dismissal, Satisfaction of Judgment, Release and any other final documents. 2.4. Confidentiality of Reports. GMK shall keep confidential all reports, information and data received, prepared, or assembled pursuant to performance under this Agreement. Such information shall not be made available to any person, news release, firm, corporation, or entity without prior written consent of the City or as otherwise required by law. Status reports will be submitted to the City through the Human Resources Department whenever any significant event occurs, and in any event at least quarterly. Information sufficient to set reserves, including, without limitation, potential liability exposure and percentage of fault, shall be included. Any and all settlements shall require City approval. Request for settlement authority shall be made through the Human Resources Department which shall obtain the necessary City approvals. In the event the settlement value of this case appears to exceed $20,000 the Human Resources Department shall be notified immediately. 3.0. TERM AND NOTIFICATION 3.1. Term. This Agreement shall commence on the September 8, 2018 and continue through September 8, 2019, with the option of one (1), one (1) year extension, exercisable at the City’s sole discretion, as determined by the City’s authorized representative. 3.2. Termination. Either Party may terminate the services provided under Section 1.1 of this Agreement upon thirty (30) days’ written notice to the other Party. In the event of termination, GMK shall be paid the reasonable value of services rendered to the date of 3 6.b Packet Pg. 98 Attachment: HR.PSA with GMK - Attachment 1 - Agreement REVISED (5709 : Amended and Restated Professional Services Agreement Between termination. GMK will continue to represent the City on the terms and conditions in this Agreement until the cases and files are transferred to another attorney. 3.3. Documents. In the event of termination of this Agreement, all documents prepared by GMK in their performance of this Agreement shall be delivered to the City within ten (10) days of delivery of termination notice to GMK, at no cost to City . Any use of uncompleted documents without specific written authorization from GMK shall be at City’s sole risk and without liability or legal expense to GMK. 4.0. INSURANCE 4.1. Minimum Scope and Limits of Insurance. GMK shall obtain and maintain during the term of this Agreement all of the following insurance coverages: (a) Commercial general liability, including premises-operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. (b) Automobile liability for owned vehicles, hired, and non-owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. (c) Workers’ compensation insurance as required by the State of California, including Employment Liability with $250,000.00 limits covering all persons providing service on behalf of GMK and all risks to such persons under this Agreement. GMK shall require its Workers Compensation carrier to waive all rights of subrogation against the City and its officers and employees and any others for whom services are being provided under this Agreement. (d) Professional Liability Insurance with limits of at least One Million Dollars ($1,000,000.00) per claim. In lieu of naming the City as an additional insured, the policy may be endorsed as follows: “Insurance coverage afforded by this policy shall also apply to the liability assumed by the Insured under the Agreement with the CITY OF SAN BERNARDINO for legal services, provided such liability results from an error, omission or negligent act of the insured, its officers, employees, agents, or subcontractors. All other provisions of this policy are to remain unchanged." 4.2. Endorsements. The commercial general liability insurance policy shall contain or be endorsed to contain the following provisions: (a) Additional insureds: “The City of San Bernardino and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this contract with City.” 4 6.b Packet Pg. 99 Attachment: HR.PSA with GMK - Attachment 1 - Agreement REVISED (5709 : Amended and Restated Professional Services Agreement Between (b) Notice: “Said policy shall not terminate, nor shall it be materially changed or cancelled, nor the coverage reduced, until thirty (30) days after written notice is given to City.” (c) Other insurance: “Any other insurance maintained by the City of San Bernardino shall be excess and not contributing with the insurance provided by this policy.” 4.3. Certificate of Insurance. GMK shall furnish certificates of insurance and certified copies of all policies and endorsements to the Human Resources Department evidencing the insurance coverage above required prior to the commencement of performance of services hereunder, which certificates shall provide that such insurance shall not be terminated or expire without thirty (30) days written notice to the Human Resources Department and shall maintain such insurance from the time GMK commences performance of services hereunder until the completion of such services. All policies required above are to be primary and non- contributing with any insurance policies or self-insurance programs carried or administered by the City or other parties represented under this Agreement. 4.4. Non-limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which GMK may be held responsible for payments of damages to persons or property. 5.1. GENERAL PROVISIONS 5.1. Entire Agreement. This Agreement constitutes the entire Agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations including, without limitation, the Original Agreement. This Agreement may be modified only in writing and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement. 5.2. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery facsimile or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by facsimile; and c) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United states mail. IF TO GMK: IF TO CITY: Goldman Magdalin Krikes, LLC. City of San Bernardino Richard Goldman Helen Tran Founding Partner, Goldman, Magdalin & Krikes Director of Human Resources 3623 Old Conejo Road, Suite 205 290 North D Street Newbury, CA 91320 San Bernardino, CA 92401 Phone: (909) 384-5161 5 6.b Packet Pg. 100 Attachment: HR.PSA with GMK - Attachment 1 - Agreement REVISED (5709 : Amended and Restated Professional Services Agreement Between 5.3. Attorneys’ Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary and expenses of the City Attorney and member of his office in enforcing this contract on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement. 5.4. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in San Bernardino County, California. 5.5. Assignment. GMK shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of GMK’s interest in this Agreement without City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City’s consent, no subletting or assignment shall release GMK or GMK’s obligation to perform all other obligations to be performed by GMK hereunder for the term of this Agreement. 5.6. Indemnification and Hold Harmless. GMK shall protect, defend, indemnify and hold harmless City, including its Water Department, and its elected and appointed officials, boards, commissions, officers, attorneys, agents and employees from any and all claims, losses, demands, suits, administrative actions, penalties, liabilities and expenses, including reasonable attorney fees, damage to property or injuries to or death of any person or persons or damages of any nature including, but not limited to, all civil claims or workers’ compensation claims arising from or in any way related to GMK’s performance under this Agreement, except when caused solely by the City’s negligence. 5.7. Independent Contractor. GMK, at all times while performing under this Agreement, is and shall be acting at all times as an independent contractor and not as an agent or employee of City. GMK shall secure, at its own expense, and be responsible for any and all payment of wages, benefits and taxes including, but not limited to, Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for GMK and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Neither GMK nor its officers, agents and employees shall be entitled to receive any benefits which employees of City are entitled to receive and shall not be entitled to workers’ compensation insurance, unemployment compensation, medical insurance, life insurance, paid vacations, paid holidays, pension, profit sharing or social security on account of GMK and its officers’, agents’ and employees’ work for the City. This Agreement does not create the relationship of agent, servant, employee partnership or joint venture between the City and GMK. GMK shall be deemed the agent of the City for the sole and limited purpose of serving as the City’s and Water Department’s Workers’ Compensation Third Party Administrator as set forth herein and to the extent of the authority granted herein, subject to the City of San Bernardino Charter. 6 6.b Packet Pg. 101 Attachment: HR.PSA with GMK - Attachment 1 - Agreement REVISED (5709 : Amended and Restated Professional Services Agreement Between 5.8. Conflict of Interest Disclosure. GMK or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the “Act”), which (1) requires such persons to disclose financial interest that may be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making or participation in making decisions that will have a foreseeable financial effect on such interest. GMK shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for termination of the Agreement by City. 5.9. Responsibility for Errors. GMK shall be responsible for its work and results under this Agreement. GMK, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to GMK occurs, then GMK shall, at no cost to City, provide all other GMK’s professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 5.10. Prohibited Employment. GMK shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect. 5.11. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 5.12. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and GMK and no other parties are intended to be direct or incidental beneficiaries of this Agreement and not third party shall have any right in, under or to this Agreement. 5.13. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 5.14. Amendments. Only a written executed by all of the parties hereto or their respective successors and assigns may amend this Agreement. 5.15. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom endorsement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 5.16. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 7 6.b Packet Pg. 102 Attachment: HR.PSA with GMK - Attachment 1 - Agreement REVISED (5709 : Amended and Restated Professional Services Agreement Between 5.17. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. 5.18. Corporate Authority and Authorized Representative. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so; the parties hereto are formally bound to the provisions of this Agreement. For the purposes of this Agreement, the City Manager shall serve as the City’s authorized representative. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CITY OF SAN BERNARDINO GOLDMAN, MAGDALIN & KRIKES, LLP ___________________________ Andrea M. Miller, City Manager ___________________________ Richard Goldman, Founding Partner ___________________________ Miguel Guerrero, General Manager 1 San Bernardino Municipal Water District ATTEST: ___________________________ Georgeann Hanna, City Clerk APPROVED AS TO FORM: ___________________________ City Attorney 1 The General Manager is executing this Agreement for purposes of authorizing San Bernardino Municipal Water Department expenditures in the amount of $65,000, as authorized by the City’s Water Board. 8 6.b Packet Pg. 103 Attachment: HR.PSA with GMK - Attachment 1 - Agreement REVISED (5709 : Amended and Restated Professional Services Agreement Between Exhibit A Scope of Work GMK’s policy is to always protect the best interest of our clients. We tailor defense of our clients’ interests based on their individual philosophies and claim strategies. GMK is known for reducing exposure and expenses for our clients. GMK has had a vast experience representing public entities and specifically municipalities. GMK has a strong desire and willingness to represent and defend the City of San Bernardino, including the San Bernardino Municipal Water Department, in Workers’ Compensation Claims. • Review and/prepare of reports, resolutions, orders, agreements, forms, documents required for Workers’ Compensation matters. • Research and interpret Workers’ Compensation laws, court decisions and other legal authorities in order to prepare recommendations. • Provide clear and concise legal advice and consultation on an as needed basis as requested and required. • Prepare, review and revise staff documents, including, but not limited to initiation of memorandums concerning legal issues on Workers’ Compensation Claims and recommended negotiated claim settlements. • Attend City Council closed session meetings to present settlement recommendations on claims. • Make appearances at Workers’ Compensation Appeals Board (WCAB) • Attend required meetings with the City Council as requested. • Provide related workers’ compensation training to City and Water Department staff. • Experts/knowledge in temporary disability, permanent disability – indemnity and rating, industrial disability/causation, medical consultation, rehabilitation/SJDB Voucher, Agreed Medical Examiner (AME) and Panel Qualified Medical Examiner (PQME) and case settlement. 9 6.b Packet Pg. 104 Attachment: HR.PSA with GMK - Attachment 1 - Agreement REVISED (5709 : Amended and Restated Professional Services Agreement Between 7.a Packet Pg. 105 Attachment: PW.Condor Inc Contarct Award Pool Plasretring Phase II-Report.doc 8-27-18 (5711 : Award of Construction Contract for Pool CDBG funds were insufficient to renovate all the above-mentioned pools, this project was divided in two phases. Per the City staff report dated June 21, 2017, a Phase II contract for pool plastering at various recreational facilities was awarded to Condor Inc. Discussion On February 7, 2018, Mayor and City Council awarded the Phase I construction contract to the lowest responsive bidder, Condor Inc., to plaster the Jerry Lewis Family Swim Center (3 pools), and Hernandez Pool (1 pool). The project has been successfully completed. For FY 2018/19, Community Development Block Grant (CDBG) granted $714,000 to complete Phase II of the project which includes Nunez Pool (2 pools), Delmann Heights Pool (1 pool), and Mill Pool (1 pool). Mill pool has been removed from the project list. Following is the breakdown of the lowest bid received from Condor Inc.: Phase I: Jerry Lewis Family Swim Center And Hernandez Pool (4 pools Completed) $ 468,346 Phase II: Nunez Pool and Delmann Heights Pool (Recommended Award) $ 439,147 Mill Pool (Removed from the Contract) $ 131,562 Total Bid $1,039,055 If the Phase II contract for pool plastering at various recreational facilities is awarded by the Mayor and City Council, construction is anticipated to begin in October 2018, and is anticipated to be substantially complete by December 2018. 2018-2019 Goals and Objectives This project is consistent with Goal No 4. Ensure Development of a Well-Planned Balanced and Sustainable City. This project will contribute to ensure that the City is clean and attractive. Fiscal Impact The estimated project costs, as well as available funding in the FY2018/19 Capital Projects Budget, are summarized in the table below. Estimated Project Cost Base Bid Amount $ 439,147 Construction Contingency $ 43,915 Project Management $ 24,154 Total Contract Work $ 507,216 8/31/2018 9:32 AM 7.a Packet Pg. 106 Attachment: PW.Condor Inc Contarct Award Pool Plasretring Phase II-Report.doc 8-27-18 (5711 : Award of Construction Contract for Pool Funding Fund 119 – U.S. Department of Housing and Urban Development through the City’s CDBG Program (available Balance for this project) $714,000 The project is listed on the 2018/19 CDBG list of projects that was submitted to HUD, the list has not been approved by HUD as of yet, since the project is a time sensitive project, staff recommends moving forward with project prior to HUD approvals. If HUD determines that the project is not CDBG Fund eligible, the Parkland Fund (Fund 268) will be used for the project. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2018-233 authorizing the award of a construction contract with Condor Inc., authorizing the City Manager to execute a contract in the amount of $439,147 for pool plastering at various recreational facilities; authorizing a construction contingency in the amount of $43,915; and authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Resolution; Exhibit A–Bid Opening Report & Bid Tabulation for Pool Plastering at Various Recreational Facilities Phase II; Exhibit B-Bid Documents for Pool Plastering at Various Recreational Facilities Phase II Attachment 2 Agreement Ward: 1, 7 Synopsis of Previous Council Actions: 06- 21-2017 Resolution No. 2017- 118 adopted the City’s final budget document for Fiscal Year 2017/2018. 8/31/2018 9:32 AM 7.a Packet Pg. 107 Attachment: PW.Condor Inc Contarct Award Pool Plasretring Phase II-Report.doc 8-27-18 (5711 : Award of Construction Contract for Pool RESOLUTION NO. 2018-233 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE AWARD OF A CONSTRUCTION CONTRACT WITH CONDOR INC., AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT IN THE AMOUNT OF $439,147 FOR POOL PLASTERING AT VARIOUS RECREATIONAL FACILITIES; AUTHORIZING A CONSTRUCTION CONTINGENCY IN THE AMOUNT OF $43,915; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Condor Inc., 3000 Durfee Avenue, El Monte, California 91732 is the lowest responsive responsible bidder for Pool Plastering at Various Recreational Facilities Phase 2 Plan No. RFQF-17-36. A contract is awarded to said bidder in a total amount of $439,147.00 with a contingency amount of $43,915.00 but such contract shall be effective only upon being fully executed by both parties. The City Manager or designee is hereby authorized and directed to execute said contract on behalf of the City. The City Manager or designee is hereby authorized and directed to execute said contingency not to exceed $43,915.00 on behalf of the City. A copy of the contract is on file in the office of the City Clerk and incorporated herein by reference as though fully set forth at length. SECTION 2 The Director of Finance is authorized and directed to issue a Purchase Order in the amount of $439,147 to Condor Inc. for this work. SECTION 3. This contract and any amendment or modifications thereto shall not take effect or become operative until fully signed and executed by the parties and no party shall be obligated hereunder until the time of such full execution. No oral agreements, amendments, modifications or waivers are intended or authorized and shall not be implied from any act or course The authorization to execute this contract is rescinded if the parties to the contract fails to execute it and return the fully executed contract to the Office of the City Clerk within sixty (60) days of passage of this Resolution. 1 7.b Packet Pg. 108 Attachment: PW.Condor Inc Contarct Award Pool Plasretring Phase II-Resolution-Attachment 1 (5711 : Award of Construction Contract for Pool RESOLUTION NO. 2018-233 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE AWARD OF A CONSTRUCTION CONTRACT WITH CONDOR INC., AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT IN THE AMOUNT OF $439,147 FOR POOL PLASTERING AT VARIOUS RECREATIONAL FACILITIES; AUTHORIZING A CONSTRUCTION CONTINGENCY IN THE AMOUNT OF $43,915; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a ______________________________ meeting thereof, held on the _____ day of ________________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, CMC, City Clerk The foregoing Resolution is hereby approved this _____ day of ________________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: 2 7.b Packet Pg. 109 Attachment: PW.Condor Inc Contarct Award Pool Plasretring Phase II-Resolution-Attachment 1 (5711 : Award of Construction Contract for Pool 7.c Packet Pg. 110 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 (5711 : Award of Construction Contract for Pool Plastering at 7.c Packet Pg. 111 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 (5711 : Award of Construction Contract for Pool Plastering at 7.c Packet Pg. 112 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 (5711 : Award of Construction Contract for Pool Plastering at 7.c Packet Pg. 113 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 (5711 : Award of Construction Contract for Pool Plastering at 7.c Packet Pg. 114 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 (5711 : Award of Construction Contract for Pool Plastering at 7.c Packet Pg. 115 Attachment: PW.Condor Inc Contract Award Pool - 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Bid Document-Attachment 3 (5711 : Award of Construction Contract for Pool Plastering at 7.c Packet Pg. 200 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 (5711 : Award of Construction Contract for Pool Plastering at 7.d Packet Pg. 201 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 202 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 203 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 204 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 205 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 206 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 207 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 208 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 209 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 210 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 211 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 212 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 213 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 214 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 215 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for 7.d Packet Pg. 216 Attachment: PW.Condor Inc Contract Award Pool - Bid Document-Attachment 3 Received August (5711 : Award of Construction Contract for A G R E E M E N T CITY OF SAN BERNARDINO THIS AGREEMENT is made and concluded this _____ day of _______________, 2018_, between the City of San Bernardino (owner and hereinafter "CITY"), and _____Condor Inc.__________________________ (hereinafter "CONTRACTOR"). 1. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the CITY, and under the conditions expressed in the bond as deposited with the CITY, receipt of which is hereby acknowledged, the CONTRACTOR agrees with the CITY, at the CONTRACTOR's own proper cost and expense in the Special Provisions to be furnished by the CITY, to furnish all materials, tools and equipment and perform all the work necessary to complete in good workmanlike and substantial manner the POOL PLASTERING AT VARIOUS RECREATIONAL FACILITIES PHASE 2 (PR19-004 ) in strict conformity with Plans and Special Provisions RFQF-17-36 , and also in accordance with Standard Specifications for Public Works/Construction, latest edition in effect on the first day of the advertised “Notice Inviting Sealed Bids” for this project, on file in the Office of the City Engineer, Public Works Department, City of San Bernardino, which said Plans and Special Provisions and Standard Specifications are hereby especially referred to and by such reference made a part hereof. 2. The CONTRACTOR agrees to receive and accept the prices as set forth in the Bid Schedule as full compensation for furnishing all materials and doing all the work contemplated and embraced in this agreement; also for all loss or damage arising out of the nature of the work aforesaid or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work, and for well and faithfully completing the work and the whole thereof, in the manner and according to the Plans and Special Provisions, and requirements of the Engineer under them. 3. The CONTRACTOR herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on the basis of race, color, national origin, religion, sex, marital status, or ancestry in the performance of this contract, nor shall the CONTRACTOR or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection of subcontractors, vendees, or employees in the performance of this contract. Failure by the CONTRACTOR to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as recipient deems appropriate. 7.e Packet Pg. 217 Attachment: PW.Condor Inc Contarct Award Pool Plasretring Phase II-Agreement-Attachment 4 (5711 : Award of Construction Contract for Pool AGREEMENT: POOL PLASTERING AT VARIOUS RECREATIONAL FACILITIES PHASE 2 (PR19-004 ) 4. CITY hereby promises and agrees with the said CONTRACTOR to employ, and does hereby employ the said CONTRACTOR to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices aforesaid, and hereby contracts to pay the same at the time, in the manner, and upon the conditions above set forth; and the same parties for themselves, their heirs, executors, administrators, and assigns, do hereby agree to the full performance of the covenants herein contained. 5. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said CONTRACTOR, then this instrument shall control and nothing herein shall be considered as an acceptance of said terms of said bid conflicting herewith. IN WITNESS WHEREOF, the parties of these presents have executed this contract in four (4) counterparts, each of which shall be deemed an original in the year and day first above mentioned. CONTRACTOR CITY OF SAN BERNARDINO CONDOR INC. BY: ___________________________________ ANDREA M. MILLER City Manager BY: _______________________________ TITLE: ATTEST: MAILING ADDRESS: 3000 Durfee Avenue _______________________________ GEORGEANN HANNA _________El Monte, California 91732________ City Clerk _______________________________________ PHONE NO.: ( 626 )_644-5825__________________ APPROVED AS TO FORM: ATTEST: _______________________________ GARY D. SAENZ, City Attorney ____________________________________ Secretary NOTE: Secretary of the Owner should attest. If Contractor is a corporation, Secretary should attest. 7.e Packet Pg. 218 Attachment: PW.Condor Inc Contarct Award Pool Plasretring Phase II-Agreement-Attachment 4 (5711 : Award of Construction Contract for Pool 8.a Packet Pg. 219 Attachment: PW.Parking Structure Deck Waterproofing-REPORT (5712 : Award of Construction Contract for City Hall Parking Structure Deck The Project was advertised for public bidding on June 30, 2018, and July 5, 2018, in the San Bernardino County Sun Newspaper, F. W. Dodge, Construction Bid Board, High Desert Plan Room, San Diego Daily Transcript, Reed Construction Data, Bid America Online, Construction Bid Source, Bid Ocean, and the City’s websites. Sealed bids were received and opened on July 26, 2018; the City received 3 bids as follow: BIDDER TOTAL ANGELUS WTERPROOFING &RESTORATION, INC. $462,250 J. FRANCIS COMPANY $474,000 HOWARD RIDLEY COMPANY, INC. $709,500 The lowest apparent bidder is Angelus Waterproofing & Restoration Inc. of Huntington Beach, California, with a bid of $462,250. The City has reviewed all 3 bid packages and confirmed that Angelus Waterproofing & Restoration, Inc. is the lowest responsible and responsive bidder. If awarded by the City Council, construction is anticipated to begin in September 2018, and to be substantially complete by November 2018. 2018-2019 Goals and Objectives This project is consistent with Goal No 4. Ensure Development of a Well-Planned Balanced and Sustainable City. This project will contribute to well-maintained public buildings for sustained economic growth. Duplication Fiscal Impact The estimated project costs are summarized in the table below. Sufficient funds for this project are available from unspent FY 2017/18 capital project funds. These funds need to be carried over in to FY 2018/19 and set up in the project account. Estimated Project Cost Base Bid Amount $462,250 Construction Contingency $46,225 Engineering and Inspections $25,000 Total Contract Work $533,475 Funding Budget amendment requested- funds are available for this project, included in the FY 2018/19 CIP, need to be carried over from FY 2017/18 and transferred to a project account $534,000 Total Project Funding $534,000 Based on the above, staff is requesting that the Mayor and City Council authorize the carry over and transfer $534,000 into the FY 2018/19 General Fund budget. 8/31/2018 9:31 AM 8.a Packet Pg. 220 Attachment: PW.Parking Structure Deck Waterproofing-REPORT (5712 : Award of Construction Contract for City Hall Parking Structure Deck Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2018-242 of the Mayor and City Council of the City of San Bernardino, California, approving a construction contract with Angelus Waterproofing and Restoration, Inc. in the amount of $462,250; authorize a construction contingency in the amount of $46,225; authorize the Finance Director to amend FY 2018/19 Adopted Budget by carrying over and transferring remaining FY 2017/18 funds from account number 001-090- 0053-5505 in the amount of $534,000 to a project account to be established; and authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Resolution Attachment 2 Bid Opening Report & Bid Tabulation for City Hall Parking Structure Deck Waterproofing Attachment 3 Lowest Bid Form Angelus Waterproofing & Restoration Inc. Attachment 4 Agreement Ward: 4 Synopsis of Previous Council Actions: None 8/31/2018 9:31 AM 8.a Packet Pg. 221 Attachment: PW.Parking Structure Deck Waterproofing-REPORT (5712 : Award of Construction Contract for City Hall Parking Structure Deck RESOLUTION NO. 2018-242 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A CONSTRUCTION CONTRACT WITH ANGELUS WATERPROOFING AND RESTORATION, INC., IN THE AMOUNT OF $462,250 AND AUTHORIZING A CONSTRUCTION CONTINGENCY IN THE AMOUNT OF $46,225 AND AUTHORIZE THE FINANCE DIRECTOR TO AMEND FY 2018/19 ADOPTED BUDGET BY CARRYING OVER AND TRANSFERRING REMAINING FY2017/18 FUNDS FROM ACCOUNT NUMBER 001-090- 0053-5505 IN THE AMOUNT OF $534,000 TO A PROJECT ACCOUNT TO BE ESTABLISHED, AND AUTHORIZE THE CITY MANAGER OR DESIGNEE TO SIGN ALL NECESSARY DOCUMENTS, AND AUTHORIZE THE CITY MANAGER TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Angelus Waterproofing and Restoration, Inc., 17762 Metzler Lane, Huntington Beach, California 92647 is the lowest responsive responsible bidder for City Hall Parking Structure Deck Waterproofing per Plan No. 13214. A contract is awarded to said bidder in a total amount of $462,250 with a contingency amount of $46,225 but such contract shall be effective only upon being fully executed by both parties. All other bids, therefore, are hereby rejected. The City Manager or designee is hereby authorized and directed to execute said contract on behalf of the City. The City Manager or designee is hereby authorized and directed to execute said contingency not to exceed $46,225 on behalf of the City. A copy of the contract is on file in the office of the City Clerk and incorporated herein by reference as though fully set forth at length. SECTION 2. The Director of Finance is authorized to amend FY 2018/19 adopted budget by carrying over and transferring remaining FY2017/18 funds from account number 001-090- 0053-5505 in the amount of $534,000 to a project account to be established. SECTION 3 The Director of Finance is authorized and directed to issue a Purchase Order in the amount of $462,250 to Angelus Waterproofing and Restoration, Inc. for this work. 1 8.b Packet Pg. 222 Attachment: PW.Parkng Structure.Attachment 1- RESOLUTION (5712 : Award of Construction Contract for City Hall Parking Structure Deck RESOLUTION NO. 2018-242 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A CONSTRUCTION CONTRACT WITH ANGELUS WATERPROOFING AND RESTORATION, INC., IN THE AMOUNT OF $462,250 AND AUTHORIZING A CONSTRUCTION CONTINGENCY IN THE AMOUNT OF $46,225 AND AUTHORIZE THE FINANCE DIRECTOR TO AMEND FY 2018/19 ADOPTED BUDGET BY CARRYING OVER AND TRANSFERRING REMAINING FY2017/18 FUNDS FROM ACCOUNT NUMBER 001-090- 0053-5505 IN THE AMOUNT OF $534,000 TO A PROJECT ACCOUNT TO BE ESTABLISHED, AND AUTHORIZE THE CITY MANAGER OR DESIGNEE TO SIGN ALL NECESSARY DOCUMENTS, AND AUTHORIZE THE CITY MANAGER TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 4. This contract and any amendment or modifications thereto shall not take effect or become operative until fully signed and executed by the parties and no party shall be obligated hereunder until the time of such full execution. No oral agreements, amendments, modifications or waivers are intended or authorized and shall not be implied from any act or course The authorization to execute this contract is rescinded if the parties to the contract fail to execute it and return the fully executed contract to the Office of the City Clerk within sixty (60) days of passage of this Resolution. /// /// /// /// /// /// /// /// /// /// /// /// 2 8.b Packet Pg. 223 Attachment: PW.Parkng Structure.Attachment 1- RESOLUTION (5712 : Award of Construction Contract for City Hall Parking Structure Deck RESOLUTION NO. 2018-242 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A CONSTRUCTION CONTRACT WITH ANGELUS WATERPROOFING AND RESTORATION, INC., IN THE AMOUNT OF $462,250 AND AUTHORIZING A CONSTRUCTION CONTINGENCY IN THE AMOUNT OF $46,225 AND AUTHORIZE THE FINANCE DIRECTOR TO AMEND FY 2018/19 ADOPTED BUDGET BY CARRYING OVER AND TRANSFERRING REMAINING FY2017/18 FUNDS FROM ACCOUNT NUMBER 001-090- 0053-5505 IN THE AMOUNT OF $534,000 TO A PROJECT ACCOUNT TO BE ESTABLISHED, AND AUTHORIZE THE CITY MANAGER OR DESIGNEE TO SIGN ALL NECESSARY DOCUMENTS, AND AUTHORIZE THE CITY MANAGER TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a ______________________________ meeting thereof, held on the _____ day of ________________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, CMC, City Clerk The foregoing Resolution is hereby approved this _____ day of ________________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: 3 8.b Packet Pg. 224 Attachment: PW.Parkng Structure.Attachment 1- RESOLUTION (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.c Packet Pg. 225 Attachment: PW.Parking Structure.Attachment 2-Bid Report (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.c Packet Pg. 226 Attachment: PW.Parking Structure.Attachment 2-Bid Report (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 227 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 228 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 229 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 230 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 231 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 232 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 233 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 234 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 235 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 236 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 237 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 238 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 239 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 240 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 241 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 242 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck 8.d Packet Pg. 243 Attachment: PW.Parking Structure.Attachment 3-Lowest Bid Form (5712 : Award of Construction Contract for City Hall Parking Structure Deck A G R E E M E N T CITY OF SAN BERNARDINO THIS AGREEMENT is made and concluded this _____ day of _________________, 20___, between the City of San Bernardino (owner and hereinafter "CITY"), and Angelus Waterproofing & Restoration Inc. ( hereinafter "CONTRACTOR"). 1. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the CITY, and under the conditions expressed in the bond as deposited with the CITY, receipt of which is hereby acknowledged, the CONTRACTOR agrees with the CITY, at the CONTRACTOR's own proper cost and expense to furnish all the materials, supplies, machinery, equipment, tools, superintendence, labor, insurance, and other accessories and services necessary to complete the said project in accordance with the conditions and prices stated in the Bid Documents, the Special Provisions and Conditions and Provisions for Community Development Block Grant federally-funded projects, in good workmanlike and substantial manner the CITY HALL PARKING SRTUCTURE DECK WATERPROOFING in strict conformity with Plans and Special Provisions No. 13214 , and also in accordance with Standard Specifications for Public Works/Construction, latest edition in effect on the first day of the advertised “Notice Inviting Sealed Bids” for this project, on file in the Office of the City Engineer, Public Works Department, City of San Bernardino, which said Plans and Special Provisions and Standard Specifications are hereby especially referred to and by such reference made a part hereof. 2. Contractor agrees to receive and accept the prices as set forth in the bid schedule as full compensation for furnishing all materials and doing all the work contemplated and embraced in this agreement; also for all loss or damage arising out of the nature of the work aforesaid or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work, and for well and faithfully completing the work and the whole thereof, in the manner and according to the Plans and Special Provisions, and requirements of the Engineer under them. 3. The Contractor herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this contract, nor shall the Contractor or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection of subcontractors, vendees, or employees in the performance of this contract. 8.e Packet Pg. 244 Attachment: PW.Parking Structure.Attacment 4-Agreement (5712 : Award of Construction Contract for City Hall Parking Structure Deck CITY HALL PARKING SRTUCTURE DECK WATERPROOFING 4. City hereby promises and agrees with the said Contractor to employ, and does hereby employ the said Contractor to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices aforesaid, and hereby contracts to pay the same at the time, in the manner, and upon the conditions above set forth; and the same parties for themselves, their heirs, executors, administrators, and assigns, do hereby agree to the full performance of the covenants herein contained. 5. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of said terms of said bid conflicting herewith. IN WITNESS WHEREOF, the parties of these present have hereunto set their hands the year and date first above written. CONTRACTOR CITY OF SAN BERNARDINO NAME OF FIRM: BY: ___________________________________________ ANDREA M. MILLER, City Manager City of San Bernardino BY: ______________________________ TITLE: ATTEST: MAILING ADDRESS: _______________________________ GEORGEANN HANNA, City Clerk __________________________________ __________________________________ PHONE NO.:( )_________________ APPROVED AS TO FORM: ______________________________ GARY D. SAENZ, City Attorney NOTE: Secretary of the Owner should attest. If Contractor is a corporation, Secretary should attest. 8.e Packet Pg. 245 Attachment: PW.Parking Structure.Attacment 4-Agreement (5712 : Award of Construction Contract for City Hall Parking Structure Deck 9.a Packet Pg. 246 Attachment: EDH.NPHS HOME AGMT Amend 1.REPORT (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing work required to permanently affix the three properties to their foundations, utility connections and site security. Consequently, an amendment to the agreement is needed to reimburse NPHS. The difference in the costs incurred and those estimated in the original agreement is a result of an overheated construction industry in which costs have increased significantly. Based on a current appraised value of $280,000, and current assumptions regarding down payments and closing costs, the sales proceeds from the three homes are estimated to total $721,800. NPHS would be reimbursed $185,000 and the City would receive approximately $536,000, instead of $721,800. Also, the proposed amendment will give the City Manager the option to extend the Master Agreement with NPHS for up to the two years that are left, in the three year agreement. 2018-19 Goals and Objectives HOME Investment Partnerships Program Infill Housing Development Master Agreement aligns with Goal No. 4: Ensure Development of Well-Planned, Balanced, and Sustainable City. Fiscal Impact Projected reimbursement to the HOME program will be lower than anticipated, however in order to keep the homes affordable to families at 80% of AMI, NPHS cannot pass the costs onto prospective low-income buyers. Conclusion It is recommended that the Mayor and City Council authorize the execution of Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing Development Master Agreement and authorize the City Manager or designee to take any further actions and execute additional documents as necessary to effectuate the agreement. Attachments Attachment 1 Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing Development Master Agreement Attachment 2 Photo Attachment 3 HOME Infill Housing Development Master Agreement Ward: Citywide On October 4, 2017, the Mayor and City Council adopted Resolution No. 2017-186 authorizing a revision to the HOME agreement with NPHS to change the financial structure from a loan to a grant. On June 21, 2017, the Mayor and City Council adopted Resolution No. 2017-116 authorizing the execution of a HOME agreement with NPHS to implement the modular housing component of the Infill Housing Program. 8/31/2018 9:17 AM 9.a Packet Pg. 247 Attachment: EDH.NPHS HOME AGMT Amend 1.REPORT (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing AMENDMENT NO. 1 TO HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) INFILL HOUSING DEVELOPMENT MASTER AGREEMENT This Amendment No. 1 to Home Investment Partnerships Program (Home) Infill Housing Development Master Agreement (“this Amendment”) is entered into and is effective as of ____________ __, 2018 by and between the City of San Bernardino (“City”) and Neighborhood Partnership Housing Services, Inc., a California 501(c)(3) public benefit corporation (“Developer”). 1. On October 19, 2017, City and Developer entered into a Home Investment Partnerships Program (Home) Infill Housing Development Master, Agreement (the “Master Agreement”). 2. For good and valuable consideration, the receipt and ade quacy of which are hereby acknowledged, City and Developer hereby amend the Master Agreement as follows: (a) A of Section 5 is amended to read as follows: The Term of this Agreement shall commence on the Effective Date and will expire one (1) year after the Effective Date, unless earlier terminated as provided in this Agreement. The City manager, or his or designee, at the discretion of the City Manager acting on behalf of the City, will have the option to extend the Term for up to two years, as all such extensions are aggregated, with the consent of Developer. Notwithstanding the foregoing portion of this Section 5(A), documents recorded pursuant to this Agreement shall remain effective in accordance with their terms. (b) Section 16.C. of the Master Agreement is deleted in its entirety. (c) Section 17.F. is added to the Master Agreement, to read in its entirety as follows: “F. Disposition of Sale Proceeds. Proceeds from the sale of each Eligible Property shall be disbursed as follows: (1) Developer shall first be reimbursed for any amount expended by Developer in the development of the Eligible Property from Developer’s own funds and not from the HOME Funds provided by City. Prior to reimbursement, Developer shall provide City with a full accounting, satisfactory to Cit y, detailing such expenditures and justifying the amount for which Developer seeks reimbursement pursuant to this Subsection. (2) All sales proceeds remaining after the reimbursement of Developer as provided for in Subsection (1) above shall be disbursed to City as program income.” 3. Except as expressly amended as set forth in this Amendment, all provisions of the Master Agreement shall remain in full force and effect. [Signatures on following page.] 9.b Packet Pg. 248 Attachment: EDH.NPHS HOME AGT Amend 1.ATTACHMENT1 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill 2 CITY OF SAN BERNARDINO By: Andrea M. Miller, City Manager Date: NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, INC. By: Clemente Mojica, Executive Director Date: 9.b Packet Pg. 249 Attachment: EDH.NPHS HOME AGT Amend 1.ATTACHMENT1 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill 9.c Packet Pg. 250 Attachment: EDH.NPHS HOME ATTACH Photo (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 251 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 252 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 253 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 254 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 255 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 256 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 257 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 258 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 259 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 260 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 261 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 262 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 263 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 264 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 265 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 266 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 267 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 268 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 269 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : 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AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 284 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 285 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 286 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 287 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 288 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 289 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 290 Attachment: 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Program Infill Housing 9.d Packet Pg. 332 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 333 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 334 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 335 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 336 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 337 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 338 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment 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Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 367 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 368 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 369 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 370 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 371 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 372 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 373 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 374 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 375 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 376 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 377 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 9.d Packet Pg. 378 Attachment: EDH.NPHS HOME AGT.ATTACHMENT3 (5713 : Amendment No. 1 to the HOME Investment Partnerships Program Infill Housing 10.a Packet Pg. 379 Attachment: PW.Infrastructure Engineers First Amendment.REPORT (5714 : First Amendment to the Infrastructure Engineers for Staff Replacement, Verdemont Community Center at Al Guhin, City Hall Parking Structure Deck Waterproofing and ADA Upgrade, Rowe Library Roof Replacement, Facilities Assessment, Demolition of Fire Station 223, and Splash Parks Improvements. If approved, the proposed amendment would allow Mr. Syed to continuing working on these projects. Fiscal Impact Infrastructure Engineers services will be paid through various CIP projects. Sufficient funds are available and have been considered in the current budget to increase to the contract amount. 2018-2019 Goals and Objectives This project is consistent with Goal No 4: Ensure Development of a Well-Planned Balanced and Sustainable City. This project will assist to contribute to well-maintained public buildings for sustained economic growth. Conclusion Staff recommends that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2018-243 approving the First Amendment to the Agreement for Consultant Services with Infrastructures Engineers and authorize the Director of Finance to increase the Purchase Order by $200,000. Attachments Attachment 1 Resolution; Exhibit A - First Amendment Attachment 2 Infrastructure Engineers Consultant Service Agreement Ward: All Synopsis of Previous Council Actions: None 8/31/2018 9:30 AM 10.a Packet Pg. 380 Attachment: PW.Infrastructure Engineers First Amendment.REPORT (5714 : First Amendment to the Infrastructure Engineers for Staff RESOLUTION NO. 2018-243 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE CONSULTANT SERVICE AGREEMENT WITH INFRASTRUCTURE ENGINEERS FOR SENIOR ENGINEER SERVICES AND AUTHORIZE THE DIRECTOR OF FINANCE TO INCREASE THE PURCHASE ORDER BY $200,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager or designee is hereby authorized and directed to execute the First Amendment to the Consultant Service Agreement with Infrastructure Engineers for Senior Engineer Services. SECTION 2. The Director of Finance or designee is hereby authorized and directed to increase the purchase order for Infrastructure Engineers by $200,000, for a total amount no to exceed $249,999 SECTION 3. This Amendment shall not take effect until it is fully signed and executed by the parties, and no party shall be obligated hereunder until the time of such full execution. No oral contracts, amendments, modifications or waivers are intended or authorized and shall not be implied from any act or course of conduct of any party. SECTION 4. The authorization to execute this First Amendment is rescinded if the parties to the Agreement fail to execute it within Ninety (90) days of the passage of this Resolution. / / / / / / / / / / / / / / / Page 1 of 2 10.b Packet Pg. 381 Attachment: PW.Infrastructure Engineers First Amendment.RESOLUTION- Attachment 1 (5714 : First Amendment to the Infrastructure RESOLUTION NO. 2018-243 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE CONSULTANT SERVICE AGREEMENT WITH INFRASTRUCTURE ENGINEERS FOR SENIOR ENGINEER SERVICES AND AUTHORIZE THE DIRECTOR OF FINANCE TO INCREASE THE PURCHASE ORDER BY $200,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a _____________________ meeting thereof, held on the _____ day of ________________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, City Clerk The foregoing Resolution is hereby approved this _____ day of ________________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By:______________________ Page 2 of 2 10.b Packet Pg. 382 Attachment: PW.Infrastructure Engineers First Amendment.RESOLUTION- Attachment 1 (5714 : First Amendment to the Infrastructure Exhibit ‘A’ FIRST AMENDMENT TO THE CONTRACTOR SERVICES AGREEMENT City of San Bernardino and Infrastructure Engineers CITY: CITY OF SAN BERNARDINO 290 North “D” Street, 3rd Floor San Bernardino, California 92401 CONTRACTOR: Infrastructure Engineers 3060 Saturn Street, Suite 250 Brea, CA 92821 SERVICES: Consultant shall provide staff augmentation services to fill the position of “Senior Engineer” To be performed by: Nadeem Syed AMOUNT: $249,999,000 (as amended) EXPIRATION DATE: June 30, 2019 MANAGING DEPARTMENT: Public Works 10.c Packet Pg. 383 Attachment: PW.Infrastructure Engineers Consultant Service Agreement First Amendment.EXHIBIT A (5714 : First Amendment to the Exhibit ‘A’ FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND INFRASTRUCTURE ENGINEERS First Amendment to the Consultant Services, dated as of September 5, 2018 (the “Amendment”), between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California (“City”), and Infrastructure Engineers (“Contractor,” and together with City, the “Parties,” and each, a “Party”). WHEREAS, the Parties have entered into an Agreement, dated as of May 22, 2018, to provide Senior Engineer Consulting Services (the “Existing Agreement”); and WHEREAS, the Parties hereto desire to amend the Existing Agreement to increase the contract amount on the terms and subject to the conditions set forth herein; and WHEREAS, pursuant to Section 12.12 of the Existing Agreement, the amendment contemplated by the Parties must be contained in a written agreement. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendments to the Existing Agreement. As of the Effective Date (defined below), the Existing Agreement is hereby amended or modified as follows: Section 4.3 Amount of Compensation is amended to replace the term “FORTY NINE THOUSAND NINE HUNDRED NINETY NINE DOLLARS ($49,0999)” with “TWO HUNDRED FORTY NINE THOUSAND NINE HUNDRED NINETY NINE DOLLARS ($249,999).” 3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date fully executed by the Parties (the “Effective Date”). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to “this Agreement,” “the Agreement,” “hereunder,” “hereof,” “herein,” or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment. 10.c Packet Pg. 384 Attachment: PW.Infrastructure Engineers Consultant Service Agreement First Amendment.EXHIBIT A (5714 : First Amendment to the Exhibit ‘A’ IN WITNESS WHEREOF, this Agreement is executed by City and Contractor acting by and through their authorized officers. CITY OF SAN BERNARDINO: Infrastructure Engineers: Date: _____ / _____ / 2018 Date: _____ / _____ / 2018 _________________________________ By: ________________________________ Andrea M. Miller, City Manager Its: ________________________________ APPROVED AS TO FORM: Gary D. Saenz, City Attorney By: ______________________________ 10.c Packet Pg. 385 Attachment: PW.Infrastructure Engineers Consultant Service Agreement First Amendment.EXHIBIT A (5714 : First Amendment to the 10.dPacket Pg. 386Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 387Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 388Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 389Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 390Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 391Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 392Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 393Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 394Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 395Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 396Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 397Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 398Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 399Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 400Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 10.dPacket Pg. 401Attachment: PW.Infrastructure Engineers First Amendment. Consultant Service Agreement- Attachment 2 (5714 : First Amendment to the 11.a Packet Pg. 402 Attachment: Library.State Library Grant Funding Appropriation.Report (5715 : State Library Grant Funding Appropriation) Fiscal Impact The grants will provide $30,000 to support the SBPL. There is fiscal impact to the General Fund as the grants have no matching requirements. A budget amendment is required for the use of these funds for their designated purpose. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino accept three individual grants awards from California State Library (CSL) for library books and literacy totaling $30,000; and authorize the Director of Finance to amend the FY2018/19 library budget accordingly. Attachments Exhibit A – Participation Agreement Bilingual Books Exhibit B - Participation Agreement Library Initiatives - Makerspaces Project Ward: All 8/31/2018 9:28 AM 11.a Packet Pg. 403 Attachment: Library.State Library Grant Funding Appropriation.Report (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 404Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 405Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 406Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 407Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 408Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 409Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 410Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 411Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 412Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 413Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.bPacket Pg. 414Attachment: Library.State Library Grant Funding Appropriation.Exhibit A (5715 : State Library Grant Funding Appropriation) 11.c Packet Pg. 415 Attachment: Library.State Library Grant Funding Appropriation.Exhibit B (5715 : State Library Grant Funding Appropriation) 11.c Packet Pg. 416 Attachment: Library.State Library Grant Funding Appropriation.Exhibit B (5715 : State Library Grant Funding Appropriation) 11.c Packet Pg. 417 Attachment: Library.State Library Grant Funding Appropriation.Exhibit B (5715 : State Library Grant Funding Appropriation) 11.c Packet Pg. 418 Attachment: Library.State Library Grant Funding Appropriation.Exhibit B (5715 : State Library Grant Funding Appropriation) 12.a Packet Pg. 419 Attachment: Facilities.1 Patch Truck Nixon-Egli.Report(f) (5717 : Issuance of a Purchase Order to Nixon-Egli Equipment Company for the 8/31/2018 11:08 AM This 2019 Ford F-750 Chassis with a PB B-4 Patch unit has a 4 cubic yard and emulsion spay unit and has the capacity of filling 100 pot holes in one foot diameter. This Patch truck will assist the O & M Division to attain the goal of keeping the City’s streets in good repair, including repair of potholes and sinkholes. The cost for this Patch Truck unit mounted on a 2019 F-750 Gas Chassis, including tax, is $218,866. 2018-2019 Goals and Objectives This purchase is consistent with Goal No. 5: Improve City Government Operations- Evaluate operations and performance through investment in the resources, technology and tools needed to continually improve organizational efficiency and effectiveness . This purchase will ensure pot holes will be repaired and all city streets are safe. The 2019 Ford F-750 Chassis with the new PB B-4 Patch unit has a 4 cubic yard capacity with a radiant heater and a mounted emulsion spay unit that has the capacity of filling 100 pot holes in one foot diameter. This Patch truck will assist the O & M Division to attain the goal of keeping the City streets in good repair, including repairs of potholes and sinkholes. Fiscal Impact Sufficient funding is available in the FY 2018/19 Adopted Budget Public Works Gas Tax Fund: 126-400-0088-5701. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve Resolution No. 2018-245 authorizing the Director of Finance to issue a Purchase Order to Nixon-Elgi Equipment Company in the amount of $218,866. Attachments Attachment 1 Resolution Attachment 2 Attachment A Ward: Synopsis of Previous Council Actions: None 12.a Packet Pg. 420 Attachment: Facilities.1 Patch Truck Nixon-Egli.Report(f) (5717 : Issuance of a Purchase Order to Nixon-Egli Equipment Company for the RESOLUTION NO. 2018-245 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING NIXON-EGLI EQUIPMENT COMPANY TO PURCHASE ONE NEW 2019 PB B-4 PATCH TRUCK UNIT MOUNTED ON A 2019 F-750 CHASSIS FOR THE CITY OF SAN BERNARDINO IN THE AMOUNT OF $218,866 AND AUTHORIZING THE DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER TO NIXION-EGLI EQUIPMENT COMPANY IN THE AMOUNT NOT TO EXCEED $218,866 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 WHEREAS, San Bernardino Municipal Code 3.04.010 (B) 3 allows for purchases authorized by the Mayor and City Council to proceed as an exemption from the competitive bidding requirements of Charter 3.04 and; WHEREAS, This procurement is being issued under the Sourcewell Contract #113012 This contract and pricing was competitively bid and available to public agencies that are members of Sourcewell. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: SECTION 1. The Director of Finance is hereby authorized to issue an annual Purchase Order to Nixon-Egli Equipment Company in the amount of $218,866, for the purchase of a New PB B-4 Patch Truck unit Mounted on a 2019 Ford F750 Chassis /// /// /// /// /// /// /// /// /// /// /// 12.b Packet Pg. 421 Attachment: Facilities.1 Patch Truck Nixon-Egli Resolution.REVISED (5717 : Issuance of a Purchase Order to Nixon-Egli Equipment Company RESOLUTION NO. 2018-245 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING NIXON-EGLI EQUIPMENT COMPANY TO PURCHASE ONE NEW 2019 PB B-4 PATCH TRUCK UNIT MOUNTED ON A 2019 F-750 CHASSIS FOR THE CITY OF SAN BERNARDINO IN THE AMOUNT OF $218,866 AND AUTHORIZING THE DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER TO NIXION-EGLI EQUIPMENT COMPANY IN THE AMOUNT NOT TO EXCEED $218,866 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a meeting thereof, held on the day of , 2018, by the following vote, to wit: COUNCILMEMBERS: AYES NAYS ABSTAIN ABSENT MARQUEZ ______ ______ ______ ______ BARRIOS ______ ______ ______ ______ VALDIVIA ______ ______ ______ ______ SHORETT ______ ______ ______ ______ NICKEL ______ ______ ______ ______ RICHARD ______ ______ ______ ______ MULVIHILL ______ ______ ______ ______ ___________________________ Georgeann Hanna, City Clerk The foregoing Resolution is hereby approved this of , 2018. ___________________________ R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: ____________________________________ 12.b Packet Pg. 422 Attachment: Facilities.1 Patch Truck Nixon-Egli Resolution.REVISED (5717 : Issuance of a Purchase Order to Nixon-Egli Equipment Company 12.c Packet Pg. 423 Attachment: Facilities.1 Patch Truck Nixon-Egli Attachment (5717 : Issuance of a Purchase Order to Nixon-Egli Equipment Company for the 12.c Packet Pg. 424 Attachment: Facilities.1 Patch Truck Nixon-Egli Attachment (5717 : Issuance of a Purchase Order to Nixon-Egli Equipment Company for the 12.c Packet Pg. 425 Attachment: Facilities.1 Patch Truck Nixon-Egli Attachment (5717 : Issuance of a Purchase Order to Nixon-Egli Equipment Company for the 12.c Packet Pg. 426 Attachment: Facilities.1 Patch Truck Nixon-Egli Attachment (5717 : Issuance of a Purchase Order to Nixon-Egli Equipment Company for the 13.a Packet Pg. 427 Attachment: Facilities.Sourcewell NAFG 2 F-150 Trucks.Reports2 (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the provide modern technology which will be more fuel efficient and are equipped with 4Wheel drive for sites that are under construction. The Super Cabs are made available in order to carry site maps and essential equipment that is used daily by the inspectors. 2018-2019 Goals and Objectives This purchase is consistent with Goal No. 5: Improve City Government Operations- Evaluate operations and performance through investment in the resources, technology and tools needed to continually improve organizational efficiency and effectiveness. The purchase of these two trucks will ensure a safe environment for both inspectors and the citizens of San Bernardino. Fiscal Impact Sufficient funding is available in the FY 2018/19 Adopted Budget Public Works General Fund: 001-400-0025-5701. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve Resolution No. 2018-246 authorizing the Director of Finance to issue a Purchase Order to Nation Auto Fleet Group in the amount not to exceed 64,472. Attachments Attachment 1 Resolution Attachment 2 Attachment A Ward: Synopsis of Previous Council Actions: None 8/31/2018 9:19 AM 13.a Packet Pg. 428 Attachment: Facilities.Sourcewell NAFG 2 F-150 Trucks.Reports2 (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the RESOLUTION NO. 2018-246 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING NATIONAL AUTO FLEET GROUP TO PURCHASE TWO (2) 2018 SUPER DUTY FORD F-150 (X1E) XL 4WD SUPER CAB 6.75 BOX TRUCKS FOR THE CITY OF SAN BERNARDINO AND AUTHORIZING THE DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER TO NATIONAL AUTO FLEET GROUP IN THE AMOUNT NOT TO EXCEED $64,472 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 WHEREAS, San Bernardino Municipal Code 3.04.010 (B) 3 allows for purchases authorized by the Mayor and City Council to proceed as an exemption from the competitive bidding requirements of Charter 3.04 WHEREAS, this procurement is being issued under the Sourcewell Contract #120716- NAF. This contract and pricing were competitively bid and available to public agencies that are members of Sourcewell NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: SECTION 1. The Director of Finance is hereby authorized to issue an annual Purchase Order to National Auto Fleet Group in the amount of $64,472, for the purchase of two (2) 2018 Ford F150-(X1E) XL 4WD Crew Cab 6.5 Box Trucks /// /// /// /// /// /// /// 13.b Packet Pg. 429 Attachment: Facilities.Sourcewell NAFG 2 F-150 .RESOLUTION.REVISED (5718 : Issuance of a Purchase Order to National Auto Fleet Group for RESOLUTION NO. 2018-246 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING NATIONAL AUTO FLEET GROUP TO PURCHASE TWO (2) 2018 SUPER DUTY FORD F-150 (X1E) XL 4WD SUPER CAB 6.75 BOX TRUCKS FOR THE CITY OF SAN BERNARDINO AND AUTHORIZING THE DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER TO NATIONAL AUTO FLEET GROUP IN THE AMOUNT NOT TO EXCEED $64,472 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a meeting thereof, held on the day of , 2018, by the following vote, to wit: COUNCILMEMBERS: AYES NAYS ABSTAIN ABSENT MARQUEZ ______ ______ ______ ______ BARRIOS ______ ______ ______ ______ VALDIVIA ______ ______ ______ ______ SHORETT ______ ______ ______ ______ NICKEL ______ ______ ______ ______ RICHARD ______ ______ ______ ______ MULVIHILL ______ ______ ______ ______ ___________________________ Georgeann Hanna, City Clerk The foregoing Resolution is hereby approved this of __ , 2018. ___________________________ R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: ____________________________________ 13.b Packet Pg. 430 Attachment: Facilities.Sourcewell NAFG 2 F-150 .RESOLUTION.REVISED (5718 : Issuance of a Purchase Order to National Auto Fleet Group for 13.c Packet Pg. 431 Attachment: Facilities.Sourcewell NAFG 2-F150 Trucks Attachment (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the 13.c Packet Pg. 432 Attachment: Facilities.Sourcewell NAFG 2-F150 Trucks Attachment (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the 13.c Packet Pg. 433 Attachment: Facilities.Sourcewell NAFG 2-F150 Trucks Attachment (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the 13.c Packet Pg. 434 Attachment: Facilities.Sourcewell NAFG 2-F150 Trucks Attachment (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the 13.c Packet Pg. 435 Attachment: Facilities.Sourcewell NAFG 2-F150 Trucks Attachment (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the 13.c Packet Pg. 436 Attachment: Facilities.Sourcewell NAFG 2-F150 Trucks Attachment (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the 13.c Packet Pg. 437 Attachment: Facilities.Sourcewell NAFG 2-F150 Trucks Attachment (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the 13.c Packet Pg. 438 Attachment: Facilities.Sourcewell NAFG 2-F150 Trucks Attachment (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the 13.c Packet Pg. 439 Attachment: Facilities.Sourcewell NAFG 2-F150 Trucks Attachment (5718 : Issuance of a Purchase Order to National Auto Fleet Group for the 14.a Packet Pg. 440 Attachment: Facilities.NAFG (6) F-350 Super Duty Servcice Trucks.Report (5720 : Issuance of a Purchase Order to National Auto Fleet Group These Ford F-Series F-350 Service Trucks with Crew Cabs and 6.75 Box are replacing six (6) existing service trucks that are over twenty (25) years old and have over 125,000 miles each. These trucks will double the crew capacity of a normal p/u truck and is equipped with tool boxes for hand held equipment and materials. The new trucks will be more fuel efficient and will increase Public Works staff productivity while maintaining and repairing the City streets, sidewalk, curbs and gutters. 2018-2019 Goals and Objectives The purchase of these service trucks is consistent with Goal No. 5: Improve City Government Operations - Evaluate operations and performance through investment in the resources, technology and tools needed to continually improve organizational efficiency and effectiveness. This purchase will assist the O & M Crews in repairing the City’s streets, sidewalks, curbs and gutters. Fiscal Impact Sufficient funding is available in the FY 2018/19 Adopted Budget Public Works General Fund: 001-400-0088-5701. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve Resolution No. 2018-247 authorizing the Director of Finance to issue a Purchase order to National Auto Fleet Group in the amount not to exceed $187,917. Attachments Attachment 1 Resolution Attachment 2 Attachment A Ward: Synopsis of Previous Council Actions: None 8/31/2018 9:18 AM 14.a Packet Pg. 441 Attachment: Facilities.NAFG (6) F-350 Super Duty Servcice Trucks.Report (5720 : Issuance of a Purchase Order to National Auto Fleet Group RESOLUTION NO. 2018-247 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE PURCHASE OF SIX (6) NEW 2019 SUPER DUTY FORD F-350 SRW (W3A) XL 2 WE CREW CAB 6.75 BOX TRUCKS FOR THE CITY OF SAN BERNARDINO IN THE AMOUNT OF $187,917 AND AUTHORIZING THE DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER TO NATIONAL AUTO FLEET GROUP IN THE AMOUNT NOT TO EXCEED $187,917 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 WHEREAS, San Bernardino Municipal Code 3.04.010 (B) 3 allows for purchases authorized by the Mayor and City Council to proceed as an exemption from the competitive bidding requirements of Charter 3.04, and; WHEREAS, this procurement is being issued under the Sourcewell Contract #120716-NAF. This contract and pricing were competitively bid and available to public agencies that are members of Sourcewell. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: SECTION 1. The Director of Finance is hereby authorized to issue an annual Purchase Order to National Auto Fleet Group in the amount of $187,916.00, for the purchase of six (6) 2019 Ford Super Duty F350-SRW (w3a) XL 2WD Crew Ca 6.75 Box Trucks. /// /// /// /// /// /// 14.b Packet Pg. 442 Attachment: Facilities.NAFG (6) F-350 Super Crew Cab 6.75 Box.REVISED (5720 : Issuance of a Purchase Order to National Auto Fleet Group RESOLUTION NO. 2018-247 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE PURCHASE OF SIX (6) NEW 2019 SUPER DUTY FORD F-350 SRW (W3A) XL 2 WE CREW CAB 6.75 BOX TRUCKS FOR THE CITY OF SAN BERNARDINO IN THE AMOUNT OF $187,917 AND AUTHORIZING THE DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER TO NATIONAL AUTO FLEET GROUP IN THE AMOUNT NOT TO EXCEED $187,917 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a meeting thereof, held on the day of , 2018, by the following vote, to wit: COUNCILMEMBERS: AYES NAYS ABSTAIN ABSENT MARQUEZ ______ ______ ______ ______ BARRIOS ______ ______ ______ ______ VALDIVIA ______ ______ ______ ______ SHORETT ______ ______ ______ ______ NICKEL ______ ______ ______ ______ RICHARD ______ ______ ______ ______ MULVIHILL ______ ______ ______ ______ ___________________________ Georgeann Hanna, City Clerk The foregoing Resolution is hereby approved this of __ , 2018. ___________________________ R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: ____________________________________ 14.b Packet Pg. 443 Attachment: Facilities.NAFG (6) F-350 Super Crew Cab 6.75 Box.REVISED (5720 : Issuance of a Purchase Order to National Auto Fleet Group 14.c Packet Pg. 444 Attachment: Facilities.NAFG (6) F-350 Super Duty Service Trucks Attachment (5720 : Issuance of a Purchase Order to National Auto Fleet 14.c Packet Pg. 445 Attachment: Facilities.NAFG (6) F-350 Super Duty Service Trucks Attachment (5720 : Issuance of a Purchase Order to National Auto Fleet 14.c Packet Pg. 446 Attachment: Facilities.NAFG (6) F-350 Super Duty Service Trucks Attachment (5720 : Issuance of a Purchase Order to National Auto Fleet 14.c Packet Pg. 447 Attachment: Facilities.NAFG (6) F-350 Super Duty Service Trucks Attachment (5720 : Issuance of a Purchase Order to National Auto Fleet 14.c Packet Pg. 448 Attachment: Facilities.NAFG (6) F-350 Super Duty Service Trucks Attachment (5720 : Issuance of a Purchase Order to National Auto Fleet 14.c Packet Pg. 449 Attachment: Facilities.NAFG (6) F-350 Super Duty Service Trucks Attachment (5720 : Issuance of a Purchase Order to National Auto Fleet 14.c Packet Pg. 450 Attachment: Facilities.NAFG (6) F-350 Super Duty Service Trucks Attachment (5720 : Issuance of a Purchase Order to National Auto Fleet 15.a Packet Pg. 451 Attachment: EDH.CDBG Subrecipient Agmt with NPHS and OORP Policies & Procedures.REPORT (5721 : Adopt CDBG Subrecipient Agreement delivery of this program. As allowed by the federal requirements (and the provisions in the VSA) the City would like to extend the services provided by NPHS for an additional year. The expired agreement was not explicit in giving the City Manager or her designee the authority to extend the written agreement; therefore, a new agreement is required to allow NPHS to fund the loans it currently has in the pipeline and conform to CDBG regulatory requirements. Additionally, under the 2018-19 Action Plan the City Council approved $430,000 for the OORP which will fund new loans and administration services for fiscal year 2018-19, thus allowing the OORP to continue seamlessly. The City is recommending that a subrecipient agreement be utilized to allow NPHS to fund loans currently in the pipeline, ensure consistency with the Community Development Block Grant (CDBG) program and related federal requirements, and give authority to the City Manager or her designee to make non-material changes to the written agreement with the concurrence of the City Attorney. Program policies and procedures are designed to articulate the goals, objectives, responsibilities and expectations for a specific activity. To ensure the successful management of the City’s CDBG-funded activities, City staff has developed a set of policies and procedures for the Owner Occupied Residential Rehabilitation Program. This document establishes minimum standards for documentation with respect to general recordkeeping requirements, file organization and maintenance, retention of records, access to records, and reporting requirements. For these reasons, the City recommends the approval of the Owner Occupied Residential Rehabilitation Program Policies and Procedures. 2018-19 Goals and Objectives Owner Occupied Residential Rehabilitation Program supports Goal No. 4: Ensuring Development of a Well-Planned, Balanced and Sustainable Community. The purpose of City’s Owner Occupied Residential Rehabilitation Program is to create sustainable living environments by improving the City’s aging housing stock. Fiscal Impact This program is funded with Community Development Block Grant (CDBG) funds provided by HUD. Also, the authority to use these funds to support an Owner Occupied Residential Rehabilitation program was approved by City Council at the June 6, 2018 Mayor and City Council meeting through the approval of the Fiscal Year 2018-2019 Annual Action Plan. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino: 1. Adopt the CDBG Subrecipient Agreement with Neighborhood Partnership Housing Services, Inc. for a term of one year to replace the existing Vendor Services Agreement; and 8/31/2018 9:17 AM 15.a Packet Pg. 452 Attachment: EDH.CDBG Subrecipient Agmt with NPHS and OORP Policies & Procedures.REPORT (5721 : Adopt CDBG Subrecipient Agreement 2. Adopt the Owner Occupied Residential Rehabilitation Program Policies and Procedures. Attachments Attachment 1 Owner Occupied Residential Rehabilitation Program CDBG Subrecipient Agreement Attachment 2 Owner Occupied Residential Rehabilitation Program Policies and Procedures Ward: All On December 19, 2016, the Mayor and City Council adopted Resolution No. 2018-44, approving a substantial amendment to the U.S Department of Housing and Urban Development (HUD) Fiscal Year 2016-17 Annual Action Plan that reprogrammed $450,000 in Community Development Block Grant (CDBG) funds to implement an Owner Occupied Residential Rehabilitation Program. On July 19, 2017, the Mayor and City Council adopted Resolution No. 2017-134, approving an agreement with Neighborhood Partnership Housing Solutions, Inc. for Owner Occupied Residential Rehabilitation Administration Services. On June 6, 2018, the Mayor and City Council adopted Resolution No. 2018-157, approving Fiscal Year 2018-2019 Annual Action Plan that carried over $420,000 in Community Development Block Grant (CDBG) funds to implement an Owner Occupied Residential Rehabilitation Program. 8/31/2018 9:17 AM 15.a Packet Pg. 453 Attachment: EDH.CDBG Subrecipient Agmt with NPHS and OORP Policies & Procedures.REPORT (5721 : Adopt CDBG Subrecipient Agreement COMMUNITY DEVELOPMENT BLOCK GRANT SUBRECIPIENT AGREEMENT By and Between the CITY OF SAN BERNARDINO and NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, INC. 15.b Packet Pg. 454 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with TABLE OF CONTENTS Page Section 1. Definitions ..................................................................................................................... 2 Section 2. Subgrant ........................................................................................................................ 3 2.1 Maximum Amount of Subgrant .................................................................................... 3 2.2 Budget ........................................................................................................................... 4 2.3 Reimbursement of Rehabilitation and Project Management Costs............................... 4 2.4 Requests for Payment ................................................................................................... 4 2.5 Fiscal Limitations .......................................................................................................... 4 2.6 Programs Utilizing Multiple Funding Sources ............................................................. 4 2.7 Use of Subgrant Proceeds ............................................................................................. 4 2.8 Use of Federal Funds .................................................................................................... 5 Section 3. Subrecipient’s Services ................................................................................................. 5 3.1 Scope of Services .......................................................................................................... 5 3.2 Agreement and Provision of Services Nonexclusive .................................................... 5 3.3 Time for Performance ................................................................................................... 5 3.4 Subrecipient’s Proposal ................................................................................................ 5 3.5 Compliance with Law ................................................................................................... 5 3.6 Licenses, Permits, Fees and Assessments ..................................................................... 5 3.7 Nondiscrimination ......................................................................................................... 5 3.8 Familiarity with Work ................................................................................................... 5 3.9 Inspection ...................................................................................................................... 6 Section 4. Term .............................................................................................................................. 6 Section 5. Coordination of Services ............................................................................................... 6 5.1 City’s Representative .................................................................................................... 6 5.2 Subrecipient’s Representative ....................................................................................... 6 5.3 Prohibition Against Subcontracting and Assignments .................................................. 6 5.4 Independent Contractor ................................................................................................. 7 Section 6. Insurance and Indemnification ...................................................................................... 7 6.1 Insurance ....................................................................................................................... 7 6.2 Indemnification ............................................................................................................. 9 Section 7. Enforcement of Agreement ........................................................................................... 9 7.1 Events of Default .......................................................................................................... 9 7.2 Immediate Termination for Subrecipient’s Default ...................................................... 9 7.3 Termination Without Cause .......................................................................................... 9 7.4 Attorneys’ Fees ............................................................................................................. 9 Section 8. Use and Ownership of Documents and Data .............................................................. 10 8.1 Data to be Furnished by City ...................................................................................... 10 8.2 Ownership of Documents ........................................................................................... 10 Section 9. Records, Reports and Audits ....................................................................................... 10 9.1 Records and Reports ................................................................................................... 10 9.2 Monitoring .................................................................................................................. 10 Section 10. Miscellaneous Provisions ............................................................................................ 10 10.1 Waiver ......................................................................................................................... 10 10.2 Notices ........................................................................................................................ 10 i 15.b Packet Pg. 455 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with TABLE OF CONTENTS (continued) Page 10.3 Relationship of Parties ................................................................................................ 11 10.4 No Third Party Rights ................................................................................................. 11 10.5 Non-Liability of Members, Officials and Employees of the City ............................... 11 10.6 Controlling Law .......................................................................................................... 11 10.7 Time of the Essence .................................................................................................... 11 10.8 Remedies Cumulative ................................................................................................. 12 10.9 Effect of Invalidity ...................................................................................................... 12 10.10 Successors and Assigns ............................................................................................... 12 10.11 Entire Agreement ........................................................................................................ 12 10.12 Authority ..................................................................................................................... 12 10.13 Conflicts of Interest ..................................................................................................... 12 10.14 Time for Acceptance of Agreement by City ............................................................... 12 EXHIBITS Exhibit A Scope of Services Exhibit B Operating Budget Exhibit C Covenants Re: Use of Federal Exhibit D Funds Program Income Definition ii 15.b Packet Pg. 456 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with COMMUNITY DEVELOPMENT BLOCK GRANT SUBRECIPIENT AGREEMENT THIS COMMUNITY DEVELOPMENT BLOCK GRANT SUBRECIPIENT AGREEMENT (this “Agreement”), dated for purposes of identification as of July 1, 2016 (the “Date of Agreement”), is made and entered into by and between CITY OF SAN BERNARDINO, a municipal corporation and charter city (the “City”), and NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, INC. a [California corporation] (the “Subrecipient”). RECITALS A. The City is the recipient of funds (the “CDBG Funds”) from the United States Department of Housing and Urban Development (“HUD”) under the Community Development Block Grant (“CDBG”) Program for Fiscal Year 2016-2017. B. Subrecipient is eligible to receive, and has submitted an application to receive, a subgrant of CDBG funds for Fiscal Year 2016-2017 to defray certain operational costs for providing certain services to the community (hereinafter defined as “Subrecipient’s Services”). C. Subrecipient’s application for a subgrant of CDBG Funds was approved by the City Council of the City, subject to (i) approval by HUD of the City’s CDBG Application for Fiscal Year 2016-2017, and (ii) the execution by the City and Subrecipient of an agreement containing substantially the terms and conditions set forth in this Agreement. D. Subsequent to the City’s approval of Subrecipient’s application, HUD approved the City’s CDBG Application for Fiscal Year 2016-2017. E. The City and the Subrecipient (each, a “Party” and jointly, the “Parties”) desire to enter into this Agreement so that Subrecipient may receive a grant of a portion of the CDBG Funds in consideration for the provision of Subrecipient’s Services to the City and the community. NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND CONDITIONS CONTAINED HEREIN, THE CITY AND THE SUBRECIPIENT AGREE AS FOLLOWS: 15.b Packet Pg. 457 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with CONTACT INFORMATION City of San Bernardino: Gretel Noble Awarding Official Title: Housing Manager Address: 290 N. D Street City: San Bernardino State,CA Zip: 92401 Telephone: (909)384-7270 Subrecipient Organization: Neighborhood Partnership Housing Services, Inc. Jenny Ortiz, Name of Primary Contact Title: Vice President of Social Enterprise & Innovations Address: 9551 Pittsburgh Avenue City: Rancho Cucamonga State CA Zip: 91730 Telephone: (909) 204-7451 CFDA Number and Name: 14.218 Federal Award Date: 8/28/2015 (the date when the federal award is signed by the authorized official of the federal awarding agency.) CDBG Funds Obligated Program Year: 2015-2016 CDBG Funds Amount: $725.73 Federal Award Date: 9/8/2016 (the date when the federal award is signed by the authorized official of the federal awarding agency.) Program Year: 2016-2017 CDBG Funds Amount: $169,274.27 Total Amount of CDBG Funds Obligated: $170,000.00 2 15.b Packet Pg. 458 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with Section 1. Definitions. Definitions. The following capitalized terms used in this Agreement shall have the following meanings: “Agreement” means this Community Development Block Grant Subrecipient Agreement by and between the City and the Subrecipient. “Budget” means the budget supplied by Subrecipient which (i) specifies how Subrecipient proposes that the Subgrant Proceeds be allocated among the following permitted uses: Rehabilitation Construction Costs, Construction Soft Costs and Administrative Costs, and (ii) is attached hereto as Exhibit B and incorporated herein by this reference. “CDBG” is defined in Recital A hereof. “CDBG Funds” is defined in Recital A hereof. “C.F.R.” means the Code of Federal Regulations. “City” is defined in the initial paragraph of this Agreement and includes any assignee of or successor to the rights, powers and responsibilities of the City. The Director of the Department of Community and Economic Development of the City of San Bernardino, or such person’s designee (hereinafter defined as the “City’s Representative”) shall represent the City in all matters pertaining to this Agreement. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City’s Representative is authorized to act on behalf of the City unless this Agreement specifically provides otherwise or the context should otherwise require. “City’s Representative” means the Executive Director of the City’s Community Development Department, or such person’s designee. “Costs” means the supplies and materials necessary to provide Subrecipient’s Services, including, without limitation, mileage and telephone costs. “Covenants Re: Use of Federal Funds” means those additional covenants of Subrecipient required due to the federal source of the Subgrant Proceeds which are attached hereto as Exhibit D and incorporated herein by this reference. “Date of Agreement” is defined in the initial paragraph of this Agreement. “Default” is defined in Section 7.1 hereof. “Eligible Household” refers to low income households, whose gross annual income may not exceed the low-income limits defined as up to 80 percent of the San Bernardino County area median income (AMI) adjusted for household size and determined annually by the U.S. Department of Housing and Urban Development (HUD). “HUD” is defined in Recital A hereof. “Maximum Amount of Subgrant” means $170,000.00. 2 15.b Packet Pg. 459 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with “Parties” is defined in Recital E hereof. “Program Income” means gross income received by Subrecipient directly generated from the use of CDBG Funds. When such income is generated by an activity that is only partially assisted with CDBG Funds, the income shall be prorated to reflect the percentage of CDBG Funds used. See Exhibit E attached hereto and 24 C.F.R. § 570.500(a) for a fuller description of Program Income. “Progress Reports” is defined in Section 3 of the Scope of Services. “Salary and Benefits” means the reasonable salary and benefits to be paid by Subrecipient to Staff. “Scope of Services” means the description of the Subrecipient’s Services which is attached hereto as Exhibit A and incorporated herein by this reference. “Staff” means each of the persons, individually, and all of the persons, collectively, hired by the Subrecipient to provide Subrecipient’s Services under this Agreement. “Subgrant” is defined in Section 2.1 hereof. “Subgrant Proceeds” means the proceeds of the Subgrant. “Subrecipient” is defined in the initial paragraph of this Agreement. The Subrecipient’s Representative shall represent Subrecipient in all matters pertaining to this Agreement. Whenever a reference is made herein to an action or approval to be undertaken by Subrecipient, the Subrecipient’s Representative is authorized to act on behalf of Subrecipient unless this Agreement specifically provides otherwise or the context should otherwise require. “Subrecipient’s Representative” means Jenny Ortiz, Vice President of Social Enterprise & Innovations. “Subrecipient’s Services” means the services provided by Subrecipient pursuant to this Agreement and includes, but is not limited to, the provision of the services set forth in the Scope of Services. “Rehabilitation Costs” means costs associated with the completion of City approved projects as outlined in Exhibit A. “Term” is defined in Section 4 hereof. “Term Expiration Date” means June 30, 2019. Section 2. Subgrant. 2.1 Maximum Amount of Subgrant. It is expressly agreed and understood that the total amount to be paid by the City under this agreement shall not exceed $170,000. The dollar amount stated in the preceding sentence may be increased by written amendment of the Agreement, signed by an authorized representative of Subrecipient and the Director. 3 15.b Packet Pg. 460 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with 2.2 Budget. Subrecipient has submitted a budget (based upon estimated costs and administrative costs per Section 2.3 hereof) to the City for approval which sets forth the estimated use of the CDBG funds contributed by the City pursuant to this agreement. The Budget is attached hereto as Exhibit B. Any amendments to an approved budget for the Services must be approved by the City’s Director or his authorized designee. The City may require a more detailed line item breakdown of the Budget than the one contain herein, and the. Subrecipient shall provide each supplementary information about the Budget in a timely fashion in the form and content prescribed by the City. 2.3 Reimbursement of Rehabilitation and Project Management Costs. City shall reimburse Subrecipient for Rehabilitation Costs actually disbursed to Eligible Households pursuant to this Agreement and in accordance with the approved Scope of Services. City has agreed to reimburse Subrecipient for administrative costs or expenses incurred by Subrecipient to manage or implement the Program identified in the Scope of Services. Reimbursement of administrative costs shall be limited to 20% of the actual amount of Rehabilitation Costs actually incurred. City’s payment obligations shall be limited to the actual amount of Rehabilitation Costs disbursed by the Subrecipient in accordance with the terms of this Agreement, Program Guidelines, Subrecipient’s Program Policy and Procedures and the approved Budget. 2.4 Requests for Payment. To receive each payment under this agreement, Subrecipient shall submit to the City a written reimbursement request or invoice in a form approved by the City, along with such supporting documentation as may be requested by the City to verify Subrecipient’s performance of the Services for which payment is requested. Payments will be adjusted by the City in accordance with fund advances, if any, and program income balances available in Subrecipient accounts. 2.5 Fiscal Limitations. The United States of America, through HUD, may in the future place programmatic or fiscal limitations on CDBG Funds not presently anticipated. Accordingly, the City reserves the right to revise this Agreement in order to take account of such actions. In the event of funding reduction, the City may reduce the budget for this Agreement as a whole or may limit the rate by which Subrecipient receives the Subgrant for providing Subrecipient’s Services. If HUD directs the City to implement a reduction in funding, the City’s Representative may act for the City in implementing and effecting such a reduction and in revising the Agreement for such purpose. Where the City’s Representative has reasonable grounds to question the fiscal accountability, financial soundness, or compliance with this Agreement of Subrecipient, the City’s Representative may act for the City in suspending the operation of this Agreement for up to sixty (60) days upon three (3) days’ notice to Subrecipient of the City’s intention to so act, pending an audit or other resolution of such questions. 2.6 Programs Utilizing Multiple Funding Sources. For programs in which there are sources of funds in addition to CDBG Funds, Subrecipient shall provide proof of such funding. The City shall not pay for any services provided by Subrecipient which are funded by other sources. All restrictions and/or requirements provided for in this Agreement relative to accounting, budgeting and reporting apply to the total program regardless of funding sources. 2.7 Use of Subgrant Proceeds. Subrecipient shall use the Subgrant Proceeds to pay for (i) Salary and Benefits, and (ii) Costs, only and for no other purpose. 4 15.b Packet Pg. 461 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with 2.8 Use of Federal Funds. Subrecipient acknowledges and agrees that the Subgrant is funded from CDBG Funds allocated to the City by the United States of America through HUD. Accordingly, Subrecipient hereby provides to the City those covenants set forth in the Covenants Re: Use of Federal Funds. Section 3. Subrecipient’s Services. 3.1 Scope of Services. In compliance with all of the terms and conditions of this Agreement, Subrecipient shall provide the Subrecipient’s Services, as more fully set forth in the Scope of Services. Subrecipient represents and warrants that all Subrecipient’s Services to be provided hereunder shall be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 3.2 Agreement and Provision of Services Nonexclusive. Subrecipient acknowledges and agrees that this Agreement and the provision of services hereunder is nonexclusive and that the City may enter into similar agreements with other entities for the provision of similar services. 3.3 Time for Performance. Time is of the essence in the performance of this Agreement. Subrecipient shall perform and complete all of Subrecipient’s Services in a timely and expeditious manner. Subrecipient shall not be responsible for delays caused by circumstances beyond its reasonable control, provided that Subrecipient has delivered to the City written notice of the cause of any such delay within ten (10) days of the occurrence of such cause. 3.4 Subrecipient’s Proposal. The Scope of Services shall include the Subrecipient’s proposal or bid, if any, which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern. 3.5 Compliance with Law. Subrecipient’s Services shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City and any Federal, State or local governmental agency of competent jurisdiction. 3.6 Licenses, Permits, Fees and Assessments. Subrecipient shall obtain, at Subrecipient’s sole cost and expense, such licenses, permits and approvals as may be required by law for the performance of Subrecipient’s Services. Subrecipient shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the services required by this Agreement. 3.7 Nondiscrimination. Subrecipient agrees not to discriminate against any person or class of persons by reason of sex, color, race, creed, religion, marital status, handicap, ancestry or national origin in its provision of Subrecipient’s Services. To the extent this Agreement provides that Subrecipient offer accommodations or services to the public, such accommodations or services shall be offered by Subrecipient to the public on fair and reasonable terms. 3.8 Familiarity with Work. By executing this Agreement, Subrecipient represents and warrants that Subrecipient (i) has thoroughly investigated and considered Subrecipient’s Services to 5 15.b Packet Pg. 462 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with be performed, (ii) has carefully considered how Subrecipient’s Services should be provided and (iii) fully understands the facilities, difficulties and restrictions attending the provision of Subrecipient’s Services under this Agreement. Should the Subrecipient discover any latent or unknown conditions materially differing from those inherent in the provision of Subrecipient’s Services or as represented by the City, Subrecipient shall immediately inform the City of such fact and shall not proceed except at Subrecipient’s risk until written instructions are received from the City. 3.9 Inspection. The City and HUD and their agents and representatives shall have the right at any reasonable time to observe the provision of Subrecipient’s Services. The City is under no duty to supervise the provision of Subrecipient’s Services. Any inspection or examination by the City is for the sole purpose of protecting and preserving the City’s rights under this Agreement. No default of Subrecipient shall be waived by any inspection by the City. In no event shall any inspection by the City be a representation that there has been or will be compliance with this Agreement or that Subrecipient is in compliance with any federal, state and local laws, ordinances, regulations and directives applicable to the performance of this Agreement or the provision of Subrecipient’s Services. Subrecipient shall make or cause to be made such other independent inspections as Subrecipient may desire for Subrecipient’s own protection. Section 4. Term. This Agreement shall be for a term (the “Term”) commencing on July 1, 2016 and terminating on the Term Expiration Date, subject to earlier termination as provided in Subsection 6.1.4 or Section 7 hereof. Section 5. Coordination of Services. 5.1 City’s Representative. The City’s Representative shall represent the City in all matters pertaining to this Agreement. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City’s Representative is authorized to act unless this Agreement specifically provides otherwise or the context should otherwise require. 5.2 Subrecipient’s Representative. Subrecipient’s Representative shall represent the Subrecipient in all matters pertaining to this Agreement. Subrecipient’s Representative is authorized to act on Subrecipient’s behalf with respect to the services and work to be provided hereunder and make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principal are a substantial inducement for the City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the Term of this Agreement for directing all activities of Subrecipient and devoting sufficient time to personally supervise the provision of Subrecipient’s Services hereunder. The foregoing principal may not be changed by Subrecipient and no other personnel may be assigned to supervise the Subrecipient’s Services to be provided hereunder without the express written consent of the City. 5.3 Prohibition Against Subcontracting and Assignments. Neither the whole nor any interest in, nor any of the rights or privileges granted under this Agreement shall be assignable or transferable or encumbered in any way without the prior written consent of City. Any such purported assignment, transfer, encumbrance, pledge, subuse, or permission given without such consent shall be void as to City. This is a personal services contract and the Subrecipient was chosen on the basis 6 15.b Packet Pg. 463 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with of characteristics unique to the Subrecipient. City shall have the right to unreasonably or arbitrarily withhold its consent to any such assignment, transfer, encumbrance, pledge, subuse, or permission. 5.4 Independent Contractor. Subrecipient and any agent or employee of Subrecipient shall act in an independent capacity and not as officers or employees of City. City assumes no liability for Subrecipient’s actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied, or explicit, by or for Subrecipient. Subrecipient shall not have authority to act as an agent on behalf of City unless specifically authorized to do so in writing. Subrecipient acknowledges that it is aware that because it is an independent contractor, City is making no deduction from any amount paid to Subrecipient and is not contributing to any fund on its behalf. Subrecipient disclaims the right to any fee or benefits except as expressly provided for in this Agreement. As respects all acts or omissions of Subrecipient relating to Subrecipient’s responsibility for taxes, bonds, payments, or other commitments, implied, or explicit, by or for Subrecipient, the Subrecipient agrees to indemnify, defend (at the City’s option), and hold harmless the City, its officers, agents, employees, representatives, and volunteers from and against any and all claims, demands, defense costs, liability, or consequential damages of any kind or nature arising out of or in connection with the Subrecipient’s performance or failure to perform under this Section. Section 6. Insurance and Indemnification. 6.1 Insurance. Without limiting City’s right to indemnification, it is agreed that Subrecipient shall secure prior to commencing any activities under this Agreement, and maintain during the Term of this Agreement, insurance coverage as set forth in this Section 6.1. 6.1.1 Required Insurance Coverage. Subrecipient shall secure and maintain the following insurance coverage: (a) Workers’ Compensation Insurance as required by California statutes; (b) Comprehensive General Liability Insurance, or Commercial General Liability Insurance, including coverage for Premises and Operations, Contractual Liability, Personal Injury Liability, Products/Completed Operations Liability, Broad-Form Property Damage, Independent Contractor’s Liability and Fire Damage Legal Liability, in an amount of not less than One Million Dollars ($1,000,000.00) per occurrence, combined single limit, written on an occurrence form; and (c) Comprehensive Automobile Liability coverage, including - as applicable - owned, non-owned and hired autos, in an amount of not less than One Million Dollars ($1,000,000.00) per occurrence, combined single limit, written on an occurrence form. The City’s Representative, with the consent of the City’s Risk Manager, is hereby authorized to reduce the requirements set forth above in the event they determine that such reduction is in City’s best interest. 6.1.2 Required Clauses in Policies. Each policy of general liability and automobile insurance required by this Agreement shall contain the following clauses: “Written notice of cancellation shall be delivered to the Economic and Housing Development Department of the City of San 7 15.b Packet Pg. 464 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with Bernardino, 290 North D Street, San Bernardino, CA 92401-1734 in accordance with the policy provisions.” “It is agreed that any insurance maintained by the City of San Bernardino shall apply in excess of and not contribute with insurance provided by this policy.” “The City of San Bernardino, its officials, agents, employees, representative, and volunteers are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under contract with the City of San Bernardino.” Subrecipient hereby agrees to waive subrogation which any insurer of the Subrecipient may acquire from the Subrecipient by virtue of the payment of any loss. If requested by City, Subrecipient agrees to obtain and deliver to City an endorsement from Subrecipient’s general liability and automobile insurance insurer(s) to effect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the subrecipient, its employees and subcontractors. 6.1.3 Required Certificates and Endorsements. Prior to commencement of any work under this Agreement, the Subrecipient shall deliver to City (i) insurance certificates confirming the existence of the insurance required by this Agreement, and including the applicable clauses referenced above and (ii) endorsements to the above-required policies, which add to these policies the applicable clauses referenced above. Such endorsements shall be signed by an authorized representative of the insurance company and shall include the signator’s company affiliation and title. Should it be deemed necessary by City, it shall be the Subrecipient’s responsibility to see that City receives documentation, acceptable to City, which sustains that the individual signing such endorsements is indeed authorized to do so by the insurance company. Also, City reserves the right at any time to demand, and to receive within a reasonable time period, certified copies of any insurance policies required under this Agreement, including endorsements effecting the coverage required by these specifications. 6.1.4 Remedies for Defaults Re: Insurance. In addition to any other remedies City may have if the Subrecipient fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: (a) Obtain such insurance and deduct and retain the amount of the premium for such insurance from any sums due under this Agreement; (b) Order the Subrecipient to stop work under this Agreement and/or withhold any payment(s) which become due to the Subrecipient hereunder until the Subrecipient demonstrates compliance with the requirements hereof; (c) Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to other remedies City may have and is not the exclusive remedy for the Subrecipient’s failure to maintain insurance or secure appropriate endorsements. 8 15.b Packet Pg. 465 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with Nothing herein contained shall be construed as limiting in any way the extent to which the Subrecipient may be held responsible for payment of damages to persons or property resulting from the Subrecipient’s or its subcontractor’s performance of Subrecipient’s Services under this Agreement. 6.2 Indemnification. As respects acts, errors or omissions in the performance of Subrecipient’s Services under this Agreement, the Subrecipient agrees to indemnify and hold harmless the City, its officers, agents, employees, representatives and volunteers from and against any and all claims, demands, defense costs, liability or consequential damages of any kind or nature arising directly out of the Subrecipient’s acts, errors or omissions in the performance of Subrecipient’s Services under the terms of this Agreement. Section 7. Enforcement of Agreement. 7.1 Events of Default. For purposes of this Section 7, the word “Default” shall mean the failure of Subrecipient to perform any of Subrecipient’s duties or obligations or the breach by Subrecipient of any of the terms and conditions set forth in this Agreement. In addition, Subrecipient shall be deemed to be in Default upon Subrecipient’s (i) application for, consent to, or suffering of, the appointment of a receiver, trustee or liquidator for all or a substantial portion of its assets, (ii) making a general assignment for the benefit of creditors, (iii) being adjudged bankrupt, (iv) filing a voluntary petition or suffering an involuntary petition under any bankruptcy, arrangement, reorganization or insolvency law (unless in the case of an involuntary petition, the same is dismissed within thirty (30) days of such filing) or (v) suffering or permitting to continue unstayed and in effect for fifteen (15) consecutive days any attachment, levy, execution or seizure of all or a substantial portion of Subrecipient’s assets or of Subrecipient’s interests hereunder. City shall not be deemed to be in Default in the performance of any obligation required to be performed by City hereunder unless and until City has failed to perform such obligation for a period of thirty (30) days after receipt of written notice from Subrecipient specifying in reasonable detail the nature and extent of any such failure; provided, however, that if the nature of City’s obligation is such that more than thirty (30) days are required for its performance, then City shall not be deemed to be in Default if City shall commence to cure such performance within such thirty (30) day period and thereafter diligently prosecute the same to completion. 7.2 Immediate Termination for Subrecipient’s Default. In the event of any Default by Subrecipient, City may immediately terminate this Agreement. Such termination shall be effective immediately upon receipt by Subrecipient of written notice from City. In such event, Subrecipient shall have no further rights hereunder; City shall have all other rights and remedies as provided by law. 7.3 Termination Without Cause. Either City or Subrecipient may terminate this Agreement at any time without the necessity of cause or Default by the other Party by giving thirty (30) days’ notice in writing to the other Party. In such event, the Parties shall have no further rights hereunder, except that Subrecipient shall be paid for Subrecipient’s Services rendered and completed prior to such termination. 7.4 Attorneys’ Fees. City and Subrecipient agree that in the event of litigation to enforce this Agreement or terms, provisions and conditions contained herein, to terminate this 9 15.b Packet Pg. 466 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with Agreement, or to collect damages for a Default hereunder, the prevailing party shall be entitled to all costs and expenses, including reasonable attorneys’ fees, incurred in connection with such litigation. Section 8. Use and Ownership of Documents and Data. 8.1 Data to be Furnished by City. City shall furnish to Subrecipient such documents and materials as may be relevant and pertinent to the provision of services hereunder as City may possess or acquire. 8.2 Ownership of Documents. All documents and materials furnished by the City to Subrecipient pursuant to Section 8.1 hereof shall remain the property of the City and shall be returned to the City upon termination of this Agreement. All documents and materials prepared by Subrecipient hereunder shall become the property of the City at the time of payment to Subrecipient of all fees and expenses for their preparation, and shall be delivered to the City by Subrecipient at the request of the City. The documents and materials prepared by Subrecipient hereunder shall not be used by the City or others, except for the purpose for which they were intended. The City agrees not to associate Subrecipient’s name with any documents or materials not prepared by Subrecipient. Section 9. Records, Reports and Audits. 9.1 Records and Reports. Subrecipient shall prepare and submit financial, program progress, monitoring, evaluation, personnel, property and financial records and other reports on a quarterly basis and in the format acceptable to the City to assure proper accounting of all CDBG Funds. Subrecipient shall furnish such information which, in the judgment of the City’s Representative, may be relevant to questions of compliance with contractual conditions hereunder or granting agency directives, or with the effectiveness, legality and goals of the CDBG Program. 9.2 Monitoring. The City may conduct periodic program monitoring reviews. These reviews will focus on the extent to which the planned program has been implemented and measurable goals achieved, effectiveness of program management, and impact of the program. Authorized representatives of the City and HUD shall have the right of access to all activities and facilities operated by Subrecipient in connection with this Agreement. Facilities include all files, records, and other documents related to the performance of this Agreement. Activities include attendance at all pertinent staff, board of directors, advisory committee, and advisory board meetings and inspection by the City and HUD. Subrecipient shall ensure that its employees and board members furnish such information as, in the judgment of the City and HUD, may be relevant to the question of compliance with contractual conditions and HUD directives, or the effectiveness, legality, and achievements of the CDBG Program. Section 10. Miscellaneous Provisions. 10.1 Waiver. Inaction by City or Subrecipient with respect to a Default hereunder shall not be deemed to be a waiver of such Default. The waiver by either City or Subrecipient of any Default hereunder shall not be deemed to be a waiver of any subsequent Default. 10.2 Notices. All notices, demands or other writings to be made, given or sent hereunder, or which may be so given or made or sent by either City or Subrecipient to the other shall be deemed to have been given when in writing and personally delivered or if mailed on the third (3rd) day after 10 15.b Packet Pg. 467 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with being deposited in the United States mail, certified or registered, postage prepaid, and addressed to the respective Parties at the following addresses: If to City: Economic and Housing Development Department City of San Bernardino 290 North D Street San Bernardino, California 92401-1734 Attention: Housing Manager To Subrecipient: Neighborhood Partnership Housing Services 9551 Pittsburgh Avenue Rancho Cucamonga, CA 91730 Attention: Jenny Ortiz Telephone No. (909) 204-7451 eFAX No. (909) 545-8695 10.3 Relationship of Parties. Nothing contained herein shall be deemed or construed by the Parties, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the Parties, it being understood and agreed that Subrecipient is and will be at all times an independent contractor pursuant to this Agreement and shall not, in any way, be considered to be an officer, agent or employee of the City. 10.4 No Third Party Rights. The Parties intend that no rights nor remedies be granted to any third party as a beneficiary of this Agreement or of any covenant, duty, obligation or undertaking established herein. 10.5 Non-Liability of Members, Officials and Employees of the City. No member, official or employee of the City shall be personally liable to Subrecipient, or any successor in interest, in the event of any Default or breach by the City or for any amount which may become due to Subrecipient or Subrecipient’s successors, or on any obligation under the terms of this Agreement. Subrecipient hereby waives and releases any claim Subrecipient may have against the members, officials or employees of the City with respect to any Default or breach by City or for any amount which may become due to Subrecipient or Subrecipient’s successors, or any obligations under the terms of this Agreement. Subrecipient makes such release with the full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 10.6 Controlling Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 10.7 Time of the Essence. Time is hereby expressly declared to be the essence of this Agreement and of each and every Willi, covenant and condition hereof which relates to a date or a period of time. 11 15.b Packet Pg. 468 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with 10.8 Remedies Cumulative. The remedies given to City and Subrecipient herein shall be cumulative and are given without impairing any other rights given City or Subrecipient by statute or law now existing or hereafter enacted and the exercise on any one (1) remedy by City or Subrecipient shall not exclude the exercise of any other remedy. 10.9 Effect of Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of its terms and provisions to persons and circumstances other than those to which it has been held invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 10.10 Successors and Assigns. This Agreement and the covenants and conditions contained herein shall be binding upon and inure to the benefit of and shall apply to the successors and assigns of City and to the permitted successors and assigns of Subrecipient, and all references to “City” or “Subrecipient” shall be deemed to refer to and include all permitted successors and assigns of such Party. 10.11 Entire Agreement. This Agreement and the exhibits hereto contain the entire agreement of the City and the Subrecipient with respect to the matters covered hereby, and no agreement, statement or promise made by either City or Subrecipient which is not contained herein, shall be valid or binding. No prior agreement, understanding or representation pertaining to any such matter shall be effective for any purpose. No provision of this Agreement may be amended, modified or added except by an agreement in writing signed by City and Subrecipient. 10.12 Authority. Each individual executing this Agreement on behalf of a corporation, nonprofit corporation, partnership or other entity or organization, represents and warrants the he or she is duly authorized to execute and deliver this Agreement on behalf of such entity or organization and that this Agreement is binding upon the same in accordance with its terms. Subrecipient shall, at City’s request, deliver a certified copy of it governing board’s resolution or certificate authorizing or evidencing such execution. 10.13 Conflicts of Interest. No member, official or employee of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to this Agreement which affect his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. 10.14 Time for Acceptance of Agreement by City. This Agreement, when executed by Subrecipient and delivered to City, must be authorized, executed and delivered by the City on or before forty-five (45) days after the execution and delivery by Subrecipient or this Agreement shall be void, except to the extent that Subrecipient and City shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. (Remainder of page intentionally left bank; signatures on next page) 12 15.b Packet Pg. 469 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with IN WITNESS WHEREOF, THE CITY AND THE SUBRECIPIENT HAVE EXECUTED THIS AGREEMENT AS OF THE RESPECTIVE DATES SET FORTH BELOW. “CITY” CITY OF SAN BERNARDINO, a municipal corporation and charter city Dated: By: Andrea M. Miller City Manager APPROVED AS TO FORM: CITY OF SAN BERNARDINO OFFICE OF THE CITY ATTORNEY By: “SUBRECIPIENT” NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, a [California corporation] Dated: By: Clemente Mojica President/Chief Executive Officer 13 15.b Packet Pg. 470 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) ) County of _________ ) On ____________________, before me, [date] [here insert name and title of the officer] personally appeared [here insert name(s) of signer(s)] who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity/ies, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal. (Signature) (Seal) 15.b Packet Pg. 471 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with EXHIBIT A SCOPE OF SERVICES Subrecipient: Neighborhood Partnership Housing Services, Inc. Activity: Owner Occupied Residential Rehabilitation Program Description of activity to be undertaken: CDBG funds will be used to rehabilitate the homes of income-qualified homeowners who reside within the City of San Bernardino. Financial assistance will be provided in the form of a grant, deferred payment loan or loan. Repairs and improvements to homes include, but are not limited to, health and safety code, Americans with Disabilities Act (ADA) improvements, and energy efficiency improvements. Eligible activity citation and regulatory language: 14A – Rehab; Single-Unit Residential 570.202 This category includes loans and grants for the rehabilitation of privately owned homes. § 570.202 (b) (3) Housing activities. An eligible activity carried out for the purpose of providing or improving permanent residential structures which, upon completion, will be occupied by low- and moderate- income households. This would include, but not necessarily be limited to, the acquisition or rehabilitation of property by the recipient, a subrecipient, a developer, an individual homebuyer, or an individual homeowner; conversion of nonresidential structures; and new housing construction. If the structure contains two dwelling units, at least one must be so occupied, and if the structure contains more than two dwelling units, at least 51 percent of the units must be so occupied. Where two or more rental buildings being assisted are or will be located on the same or contiguous properties, and the buildings will be under common ownership and management, the grouped buildings may be considered for this purpose as a single structure. Where housing activities being assisted meet the requirements of paragraph § 570.208 (d)(5)(ii) or (d)(6)(ii) of this section, all such housing may also be considered for this purpose as a single structure. For rental housing, occupancy by low and moderate income households must be at affordable rents to qualify under this criterion. The recipient shall adopt and make public its standards for determining “affordable rents” for this purpose. The following shall also qualify under this criterion: (i) When less than 51 percent of the units in a structure will be occupied by low and moderate income households, CDBG assistance may be provided in the following limited circumstances: (A) The assistance is for an eligible activity to reduce the development cost of the new construction of a multifamily, non-elderly rental housing project; (B) Not less than 20 percent of the units will be occupied by low and moderate income households at affordable rents; and A-1 15.b Packet Pg. 472 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with (C) The proportion of the total cost of developing the project to be borne by CDBG funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households. (ii) When CDBG funds are used to assist rehabilitation eligible under § 570.202(b)(9) or (10) in direct support of the recipient's Rental Rehabilitation program authorized under 24 CFR part 511, such funds shall be considered to benefit low and moderate income persons where not less than 51 percent of the units assisted, or to be assisted, by the recipient's Rental Rehabilitation program overall are for low and moderate income persons. (iii) When CDBG funds are used for housing services eligible under § 570.201(k), such funds shall be considered to benefit low- and moderate-income persons if the housing units for which the services are provided are HOME-assisted and the requirements at 24 CFR 92.252 or 92.254 are met. National Objective: Low- Moderate Housing (LMH) / Citation: § 570.208 (a)(3) Performance Goals and Timelines: Consolidated Plan Objective: Preserve and Rehabilitate Housing Performance Goal: 3 Housing Units Timeframe for Completion of Performance Goal: June 30, 2019 2 15.b Packet Pg. 473 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with CITY OF SAN BERNARDINO OWNER OCCUPIED RESIDENTIAL REHABILITATION PROGRAM GUIDELINES Approved July 19, 2017 Amended September 5, 2018 A-3 15.b Packet Pg. 474 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with I. General Provisions A. Purpose The City of San Bernardino initiated the Owner Occupied Residential Rehabilitation Program (OORRP or Program) to comply with the regulatory requirements of 24 CFR 570.202(c); improve the quality of life for income-eligible households by assisting with property repairs and improvements necessary to make their homes decent, safe and attractive; to preserve the City’s housing stock; to arrest and prevent the development of blighted areas; identify and arrest the decline of deteriorating/deteriorated areas. The following guidelines serve as the minimum administrative requirements for the OORRP and are intended to reinforce and not supplant prudent underwriting practices, when considering Program applications B. Program Eligibility/National Objective Code enforcement activities meet the national objective of benefit to low and moderate income persons on an area basis under § 570.208(a)(1) when carried out in deteriorated or deteriorating areas and when carried out in conjunction with public or private improvements, rehabilitation, or services that may be expected to arrest the deterioration of the area. The City carries out Code Enforcement activities in the deteriorating areas shown in Figure 1 and this OORRP will assist in arresting deterioration in those areas. The buildings inspected by Code Enforcement are located in residential areas where a minimum of 51 percent of the residents in those areas are low- and moderate-income. It is contemplated that the Program will not provide resources for code enforcement. C. Program Funding Source The primary funding source for the Program is Community Development Block Grant (CDBG) funds provided to the City from the US Department of Housing and Urban Development (HUD) as identified in the City’s Consolidated Plan. D. Program Administrator Neighborhood partnership Housing Services (NPHS) has been selected as the Program Administer (PA) for the City’s Residential Rehabilitation Program. Application, intake and verification procedures will be in accordance with the established PA’s policies and procedures. Program administration fee shall be actual costs incurred but cannot exceed 20% of each Grant amount. E. Funds for Improvements CDBG funds shall be budgeted annually through the City’s Consolidated Plan/Annual Plan process and regular budget process. Program funds are not guaranteed and subject to availability. F. Environmental Clearance Use of HUD funds requires all programs and activities to be cleared per 24 CFR part 58. The OORRP is categorically excluded per 58.35(a)(3)(i) subject to 58.5 and requires a Tiered Environmental Review as follows: First Tier will cover the program on a eligible area basis A-4 15.b Packet Pg. 475 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with and will include clearance of coastal zones, environmental justice, air quality, noise, sole source aquifer, endangered species, wild and scenic rivers, farmlands, wetlands, and airport clear zone. The Second Tier will focus on the specific property to be rehabilitated and will cover the historic property, SHPO, floodplain, explosives, and toxic sections. Emergency repairs are not subject to SHPO concurrence. G. Davis Bacon & Related Acts (DBRA) Per Section 110 of the Housing and Community Development Act of 1974 - DBRA does not apply to rehabilitation of residential property designed for fewer than 8 families. H. Section 3 Per the Section 3 Frequently Asked Questions found at http://portal.hud.gov/hudportal/documents/huddoc?id=11secfaqs.pdf question 11 states “Section 3” does not include contractors or any intended beneficiary under the HUD program to which Section 3 applies, such as a homeowner or a Section 3 resident. As such, the funds used on the Residential Rehabilitation Program are not subject to the Section 3 Requirements. I. Equal Opportunity Applicants will not be discriminated against on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, or any other arbitrary basis. In addition, applicants may not discriminate in the use, occupancy, and awarding of contracts with respect to the property to be rehabilitated with the assistance of an OORRP loan. J. Relocation Relocation is not contemplated as a part of this rehabilitation activity, however if an unanticipated event occurs which requires temporary relocation, such relocation shall be performed in compliance with the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 and Section 104(d) and may be paid for using program funds. K. Applicability of Federal State and Local Regulations/ Authority To administer While all Program funds are subject to the requirements of these Guidelines, there may be additional special provisions and limitations depending on changing requirements of the funding source. Consequently, additional requirements not shown in these Guidelines may apply and, thus, the Community and Economic Development Director (Director) or his/her designee may amend these Guidelines from time to time to reflect changes in the requirements of the funding source for this Program as required. II. Program Assistance Income-qualified Applicants shall receive assistance in the following order 1) CDBG Target Areas; a) Emergency b) Health, Safety, & Accessibility c) Home Improvement; 2) Citywide; a) Emergency b) Health, Safety, & Accessibility c) Home Improvement; subsequent to the A-5 15.b Packet Pg. 476 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with submittal of a complete application inclusive of all required documentation as provided by the PA. A. Owner Occupied Residential Rehabilitation Program Assistance The PA provides single family (up to two units) homeowners at or below 80% of the Area Median Income (AMI) with home improvement grants at a zero percent interest rate with repayment not required unless one of the following actions occurs in the first 10 years after receipt of the loan; property safe, transfer of title, no owner occupancy, or cash-out refinancing. B. Terms and Obligations (i) Emergency, Health & Safety, and Home Improvement Loans Target Income Group: < 80% of area median income Maximum Amount: $25,000 Project Location: Citywide with a priority for CDBG eligible areas Repayment: Loans do not get repaid unless owner sells, transfers title, ceases to reside in property as principal residence, refinances property for cash-out or equity line of credit, within 10 years of loan receipt. Any repayments will be recorded as Program Income. Eligible Improvements include but not limited to: Emergency repairs; lead hazard abatement; removal of architectural barriers; and the correction of code violations III. Eligibility Requirements A. Ownership The Applicant must be listed on the Grant Deed. Title must be held as Fee Simple. B. Property Title The property title shall be free of all liens or encumbrances as determined by the Program Administrator that may be detrimental to the security of the City’s Grant. C. Principal Residence Single-family homes, condominiums and townhomes are eligible for OORRP assistance. A-6 15.b Packet Pg. 477 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with D. Location The dwelling unit must be located within the City of San Bernardino as identified in Figure 1. E. Homeowners Insurance The homeowner shall maintain fire insurance coverage on the property and flood insurance if the property is within a floodplain. The minimum insurance coverage must be equal to the replacement value of attached improvements on the property, F. Household Income Family gross annual income may not exceed the low-income limits defined as up to 80 percent of the San Bernardino County area median income (AMI) adjusted for household size and determined annually by the U.S. Department of Housing and Urban Development (HUD). G. Improvements In order to qualify and to be eligible, no work shall commence prior to: I. Application approval; II. Full execution of OORRP Agreement; III. Full execution of a Construction Agreement for work to be done on the Principal Residence and; IV. Issuance of a Notice to Proceed by the Program Administrator. H. Conflict of Interest No member of the governing body of the Program Administrator or the City and any other official, employee, or agent of the City Government who exercises policy, decision-making functions or responsibilities in connection with planning and implementation of the program shall be directly or indirectly eligible for OORRP assistance. This restriction shall continue for two (2) years after an individual’s relation with the Program Administrator or City ends. IV. Lead Based Paint Requirements As part of the program application, owners are provided with information about the dangers of lead- based paint. Evidence of receipt of this information is maintained in the project file. The lead-based paint requirements can have a significant impact on the final scope of work. If the housing unit in question was built prior to January 1, 1978, the lead-based paint requirements apply. Based on the amount of subsidy provided to the project, different levels of action are required by the Program Administrator, as shown in the following table: A-7 15.b Packet Pg. 478 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with <$5,000 $5,000-$25,000 >$25,000 Approach to Lead Hazard Evaluation and Reduction Do no harm Identify and control Lead hazards Identify and Abate Lead Hazards Notification Yes Yes Yes Lead Hazard Evaluation Paint testing of surfaces to be disturbed by rehabilitation Paint testing of surfaces to be disturbed by rehabilitation AND Risk assessment Paint testing of surfaces to be disturbed by rehabilitation AND Risk assessment Lead Hazard Reduction Repair surfaces disturbed during rehabilitation, use lead- safe work practices, clearance test of work site upon completion. Interim controls, lead- safe work practices, clearance test of unit upon completion Complete abatement, lead- safe work practices, clearance test of unit upon completion Any required lead-based paint inspections (initial and clearance) will be performed by the Program Administrators lead-based paint testing firm. The cost of initial testing and clearance will be included as part of the owner’s grant. In the event that an initial clearance test fails, it will be the contractor’s responsibility to pay for supplemental clearance tests. The contractor engaged to encapsulate and/or stabilize lead-based paint will not be paid until evidence of a lead-based paint clearance is presented to the City. Lead-based paint inspection reports and risk assessments (as applicable) will be provided to the owner and made available to contractors as an appendix to the Work Description. V. Required Record Keeping and File Retention Files will be maintained to document the significant history of OORRP activities for all projects. The Program Administrator must maintain these files for a period not less than five (5) years following completion of the work. After 5 years completed project files will be submitted to the City of San Bernardino. Project Files must include at a minimum: I. The application and all supporting documentation related to income and owner- occupancy, and property information reports. II. Official correspondence and the Rehabilitation Environmental Review. III. Inspection reports, lead-based paint reports, before and after photographs, work descriptions, internal estimate, bid evaluation, contractor clearances, contractor insurance, contractor business license, contractor W-9, recorded Notice of Completion. IV. OORRP Agreement, construction contract agreement, all loan disbursement information including invoices, payment releases, lien releases, warranties, and copies of payment checks, signed off City Permits. V. Documentation on requests for demand, reconveyance, subordinations, and defaults. A-8 15.b Packet Pg. 479 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with VI. Program Changes At the discretion of the Director or his/her designee, the Program may be modified to ensure timely expenditures of program funds and to otherwise meet the intent of assisting extremely low- to moderate-income households. VII. Program Database For each fiscal year, PA staff will maintain a project database containing the case number, name, address, telephone number, racial/ethnic data, census tract, block group, household size, household income, income level (i.e. very low, low, moderate), housing cost burden percentage, year built, application date, inspection date, Work Description approval date, expected post-rehabilitation value, grant funds awarded, project soft costs (i.e. title, credit, asbestos/lead-based paint testing), construction contract amount, contractor payment information, contract award date, final inspection date, recordation of Notice of Completion Date, approval of completed work, and project phase (i.e. pre-construction, construction, complete). VIII. Exhibits EXHIBIT A – Rehabilitation Standards Emergency Repairs Eligible project work is only considered an emergency if not addressing the issue will adversely impact the health and safety of the residents. Examples of emergency work includes lead paint abatement if a child six or under has documented elevated blood lead levels, no hot running water, blocked plumbing due to deteriorated pipes, and broken or unusable furnace. Emergencies are handled on a case-by-case basis and can take precedence over applicants on the wait list. The Program Administrator, in conjunction with the Community and Economic Development Department and applicable City departments is responsible for determining if a particular housing problem is an emergency. Code Correction Repairs At a minimum, at the completion of each project, all health and safety issues and all code violations shall be corrected. Every grant made under the OORRP shall be used to finance rehabilitation standards that address all health and safety issues and code violations, and no grant can be approved which would permit a dwelling unit after rehabilitation to be out of compliance with applicable codes. Applicable codes include the San Bernardino Municipal Code, Uniform Building Code, the National Electrical Code, the Uniform Plumbing Code, the Uniform Mechanical Code, and Chapters 5-10 of the Uniform Housing Code, ADA Section 504, and relevant sections of Title 24 that pertain to disability access. In addition to requiring that the building be brought into compliance with applicable codes, the Program requires specific additional upgrades in all projects. These include: upgrade of electrical equipment grounding and bonding system; GFCI replacement in kitchen, bathroom and exterior A-9 15.b Packet Pg. 480 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with areas; fire extinguishers; smoke detector upgrade to current Uniform Building Code; and installation of carbon monoxide detectors; and exterior painting, if needed. All work performed must comply with the Program’s Rehabilitation Standards. Lead Based Paint Repairs Control or abatement of defective lead based paint surfaces will be included in the property rehabilitation where applicable. A lead based paint inspection report may be required of any home built before 1978. Asbestos Removal Removal of materials containing asbestos, if necessary, will be included as part of the property rehabilitation. Accessibility Improvements Properties occupied by a disabled household member(s) qualifies for services aimed at removing architectural barriers under this Program. In cases where it is not structurally or financially feasible to bring units into full compliance with Title 24 and Section 504, limited repairs or improvements increasing overall accessibility may be undertaken provided such repairs are conducted under a plan check, permit, and inspection process by the City’s Community & Economic Development Department. Examples of eligible improvements that will alleviate architectural barriers include, but are not limited to: • Grab bars • Transitional floor coverings • Bathtubs or showers • Replacement of doorknobs with lever action handles • Plumbing alteration or modifications • Ramps • Sliding doors • Kitchen cabinet modifications • Widening doorways and hallways • Electrical switches and convenience outlet relocation • Toilet alteration or modifications • Flooring ELIGIBLE IMPROVEMENTS In addition to the above-noted improvements, program funds are available for rehabilitation improvements that are physically attached and permanent in nature as follows: 1. Repairs that remedy existing nonconforming uses such as garage conversions, additions, etc. 2. Exterior work to help preserve or protect structures, roofing, siding (if significantly damaged), re-leveling, bracing (including earthquake bracing), repair/replacement of screens/windows, doors and door locks, structural and/or foundation damage, replacement of A-10 15.b Packet Pg. 481 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with deteriorated attached porch and step structures (i.e., Mobile Home porches made of plywood). 3. Interior work to make a structure more livable and repair/replace/restore important parts such as plumbing (i.e., re-pipe and replacement of fixtures), damaged flooring, faulty or inadequate heating/cooling systems, inoperable built-in appliances, damaged ceilings, water heaters, electrical wiring and service, painting (if walls are damaged). 4. Weatherization and energy conservation items such as insulation, caulking, weather- stripping. Fumigation and treatment of termites and pest control. 5. Modifications which aid the mobility of the elderly and physically disabled such as shower units with seats, lever hardware, retrofitting toilets to achieve adequate height, moving power points and light switches, ramping, reconstructing doorways, lowering sinks in kitchens and bathrooms. 6. Testing for the presence of lead-based paint and associated control/abatement, as required. INELIGIBLE IMPROVEMENTS 1. Installation and/or repair of recreational items such as barbecues, bathhouses, greenhouses, swimming pools, saunas, television antennas, tennis courts. 2. Luxury items such as carpeting (other than water-damaged or carpeting that is not decent, safe or sanitary), burglar alarms, burglar protection bars, dumbwaiters, kennels, murals, flower boxes, awnings, patios, decks and storage sheds/workshops. Any freestanding appliances such as microwave ovens, refrigerators, dishwashers, and fans. 3. Room additions or extensions 4. Other items deemed ineligible by the Director or his/her designee. PRIORITY OF IMPROVEMENTS Improvements will be approved and made to the property in the following order of importance: 1. Emergency repairs. 2. All violations related to health and safety standards. 3. All San Bernardino Municipal and building code violations. 4. Repair or replacement of major systems including but not limited to roof, electrical, plumbing, and air conditioning/heating systems. 5. Energy efficient items such as new dual glazed windows, insulation, energy efficient light fixtures, low flow toilets. A-11 15.b Packet Pg. 482 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with 6. Exterior and interior incipient deficiencies. An incipient deficiency exists if, at the time of inspection, it appears that the physical condition of an element in the structure may fail or deteriorate into an actual deficiency in the near future (within 1-2 years). 7. General property improvements. STANDARDS FOR REHABILITATION OF HISTORIC PROPERTIES On historic structures included in the OORRP, special requirements must be met under the National Environment Policy Act and the National Historic Preservation Act of 1966, as amended. OORRP projects will be submitted for review to the State of California, Office of Historic Preservation, when a unit is within a designated Historic District, identified as a Historically Significant Structure, on the list of Structures Of Historical Interest or is more than 50 years old. In accordance with the 2014 State Historic Preservation Office (“SHPO”) guidance to the City of Irvine, all mobile homes and any building less than 50 years in age will not be submitted for review. Under direction from SHPO, historic properties shall be rehabilitated in accordance with the most appropriate standards based on the age and architecture of the structure. The basic principle is to preserve the character of the exterior spaces and surfaces. This generally entails the submission of the Work Description to SHPO for review and comment. IX. Figures A-12 15.b Packet Pg. 483 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with EXHIBIT B BUDGET (Behind this sheet) B-1 15.b Packet Pg. 484 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with EXHIBIT B BUDGET Total Project Cost a. Rehabilitation Costs: $136,000 b. Administrative Reimbursement: $ 34,000 (per Section 2.3) Total: $170,000 B-2 15.b Packet Pg. 485 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with EXHIBIT C COVENANTS RE: USE OF FEDERAL FUNDS Subrecipient acknowledges and agrees that the Subgrant is funded from CDBG Funds allocated to City by the United States of America. Accordingly, Subrecipient covenants and agrees as follows: Section 1. Compliance With Law. Subrecipient hereby covenants and agrees that it has complied and will continue to comply with the Housing and Community Development Act of 1974 (the “Housing and Community Development Act”), and all applicable Federal, state and local laws, ordinances, regulations, policies, guidelines, and requirements as they relate to acceptance and use of Federal funds for this federally-assisted program. This Agreement is subject to all such laws, ordinances, regulations, policies, and guidelines, including, without limitation, the Housing and Community Development Act; 24 CFR Part 85; 24 CFR Part 570; and 2 C.F.R. Part 200. Section 2. Civil Rights Act. Subrecipient shall comply with the Civil Rights Act of 1964, as amended, and all regulations applicable thereto. Section 3. Non-Discrimination and Equal Opportunity. Subrecipient shall not discriminate against any employee or applicant for employment on the basis of race, color, religion, sex, age, national origin, or ancestry. Subrecipient shall comply with the following: (A) The requirements of the Fair Housing Act (42 U.S.C. 3601-20) and implementing regulations at 24 C.F.R. Part 100; Executive Order 11063 and implementing regulations at 24 C.F.R. Part 107; and title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4) and implementing regulations issued at 24 C.F.R. Part 1. (B) The prohibitions against discrimination on the basis of age under the Age discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing regulations at 24 C.F.R. Part 146 and the prohibitions against discrimination against otherwise qualified individuals with disabilities under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 C.F.R. Part 8. For purposes of the CDBG program, the term “dwelling units” in 24 C.F.R. Part 8 shall include sleeping accommodations. (C) The requirements of Executive Order 11246 and the regulations issued under the Order at 41 C.F.R. chapter 60. (D) The requirements of Executive Orders 11625, 12432, and 12138. Consistent with HUD’s responsibilities under these Orders, Subrecipient must make efforts to encourage minority and women’s business enterprises in connection with activities funded under this Agreement. (E) The requirement that Subrecipient make known that use of the facilities and services is available to all on a nondiscriminatory basis. Where the procedures that Subrecipient intends to use to make known the availability of such facilities and services are unlikely to reach persons with disabilities or C-1 15.b Packet Pg. 486 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with persons of any particular race, color, religion, sex, age or national origin within Subrecipient’s service area who may qualify for them, Subrecipient must establish additional procedures that will ensure that these persons are made aware of the facilities and services. Subrecipient must also adopt and implement procedures designed to make available to interested persons information concerning the existence and location of services and facilities that are accessible to persons with a disability. Section 4. Americans with Disabilities. Subrecipient shall not discriminate against handicapped persons in the provision of the Services and shall provide accessibility for handicapped persons to the Services provided under this Agreement. Subrecipient shall comply with all applicable requirements of the Americans with Disabilities Act of 1990 and implementing regulations (28 C.F.R. Parts 35-36), in order to provide handicapped accessibility to the extent readily achievable. Section 5. Training and Employment Opportunities; Section 3 Requirements. Subrecipient acknowledges that the work to be performed under this Agreement is on a project assisted under a program providing direct federal financial assistance from the U.S. Department of Housing and Urban Development (the “Department”), and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. § 1701u (“Section 3”). Section 3 requires, that to the greatest extent feasible, opportunities for training and employment be given to lower income residents and that contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by, persons residing in the area of the project. Subrecipient shall comply with the provisions of Section 3 and the regulations issued pursuant thereto by the U.S. Secretary of Housing and Urban. Development as set forth in 24 C.F.R. Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this Agreement. 5.1 Notice to Labor Organizations. Subrecipient shall send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising such labor organization or workers’ representative of its commitments under the Section 3 clause (set forth in Section 5.2 of this Exhibit) and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. 5.2 Include in Subcontracts. Subrecipient shall include a Section 3 clause in every subcontract for work in connection with the project and shall, at the direction of the applicant for or recipient of federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 C.F.R. Part 135. Subrecipient shall not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 C.F.R. Part 135 and shall not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of said regulations. 5.3 Sanctions. Compliance with the provisions of Section 3, the regulations set forth in 24 C.F.R. Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this Agreement shall be a condition of the federal financial assistance provided to the project, binding upon the applicant or recipient for such C-2 15.b Packet Pg. 487 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with assistance, its successors, and assigns. Failure to fulfill these requirements shall subject Subrecipient, its subcontractors, its successors, and assigns to those sanctions as are specified by 24 C.F.R. Part 135. Section 6. Conflicts of Interest. In addition to the conflict of interest requirements in 2 C.F.R. Part 200, no person: (A) who (i) is an employee, agent, consultant, officer, or elected or appointed official of Subrecipient, a State recipient, or a nonprofit recipient (or of any designated public agency) that receives CDBG Subgrant amounts and (ii) exercises or has exercised any functions or responsibilities with respect to assisted activities, or (B) who is in a position to participate in a decision making process or gain inside information with regard to such activities, shall obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for him or herself or for those with whom he or she has family or business ties, during his or her tenure, or for one year thereafter. HUD may grant an exception to this exclusion as provided in 24 C.F.R. Section 570.611 (d) and (e). Section 7. Certification Regarding Lobbying. Subrecipient certifies, to the best of its knowledge and belief, that: (A) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or any employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (B) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence any officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or any employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, Subrecipient shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions. (C) Subrecipient shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontractors, subgrants, and contracts under grants, loans, and cooperative agreements), and that all Subrecipient’s shall certify and disclose accordingly. C-3 15.b Packet Pg. 488 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with Section 8. Drug Free Workplace. 8.1 Certification. Subrecipient hereby certifies to City that Subrecipient will provide a drug-free workplace by: (A) publishing a statement notifying its employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in Subrecipient’s workplace and specifying the actions that will be taken against employees for violations of such prohibition; (B) establishing a drug-free awareness program to inform employees about: (i) the dangers of drug abuse in the workplace; (ii) Subrecipient’s policy of maintaining a drug-free workplace; (iii) any available drug counseling, rehabilitation, and employee assistance program; and (iv) the penalties that may be imposed upon employees for drug abuse violations; (C) making it a requirement that each employee to be engaged in the performance of Services under this Agreement be given a copy of the statement required by subparagraph (a); (D) notifying the employee in the statement required by subparagraph (a), that as a condition of employment, the employee will: (i) abide by the terms of this statement; and (ii) notify Subrecipient of any criminal drug statute conviction for a violation occurring in the workplace no later than five (5) days after such conviction; (E) notifying City within ten (10) days after receiving notice of a conviction under subparagraph (d)(ii) from an employee or otherwise receiving actual notice of such conviction; (F) imposing a sanction on, or requiring the satisfactory participation in a drug abuse assistance or rehabilitation program by, any employee who is so convicted, as required by 41 U.S.C. 703; and (G) making a good faith effort to continue to maintain a drug-free workplace through implementation of subparagraphs (a), (b), (c), (d), (e), and (f). 8.2 Suspension. Subrecipient acknowledges and agrees that this Agreement shall be subject to suspension of payment or termination, or both, and Subrecipient shall be subject to suspension or debarment if the Executive Director of City or her official designee determines, in writing, that: C-4 15.b Packet Pg. 489 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with (A) Subrecipient has made false certification under Section 8.1; (B) Subrecipient violates such certification by failing to carry out the requirements of subparagraphs (a), (b), (c), (d), (e), (f) or (g) of Section 8.1, or (C) such a number of Subrecipient’s employees have been convicted of violations of criminal drug statutes for violations occurring in the workplace as to indicate that Subrecipient has failed to make a good faith effort to provide a drug-free workplace as required by Section 8. Section 9. Use of Debarred, Suspended or Ineligible Contractors. Subrecipient shall comply with the provisions of 24 C.F.R. Part 24 relating to the prohibition on employment, engagement of services, awarding of contracts, or funding of any contractors or subcontractors during any period of debarment, suspension, or placement in ineligibility status. Section 10. Lead-Based Paint. Subrecipient shall comply with the requirements, as applicable, of the Lead-Based Paint Poisoning Prevention Act (43 U.S.C. 4821-4846) and implementing regulations at 24 C.F.R. Part 34. In addition, Subrecipient must also meet the following requirements relating to inspection and abatement of defective lead-based paint surfaces: (A) Treatment of defective paint surfaces must be performed before final inspection and approval of the renovation, rehabilitation or conversion activity under this Agreement. (B) Appropriate action must be taken to protect shelter occupants from the hazards associated with lead-based paint abatement procedures. Section 11. Beneficiary Qualification. Subrecipient covenants and agrees that one hundred percent (100%) of the beneficiaries of the Services will be low income persons or households. Under CDBG regulations, the following clientele categories are presumed to be low income persons and can qualify for service regardless of income: abused children, battered spouses, illiterate persons, and migrant farm workers. Beneficiaries qualifying on the basis of income shall have an annual income equal to or less than HUD Section 8 (of the United States Housing Act of 1937) Income Limits. HUD Section 8 Income Limits for the City PMSA define the maximum family income for low income households. Subrecipient is responsible for obtaining from City current applicable HUD Section 8 Income Limits for the Term of this Agreement. Section 12. Flood Insurance. No site proposed on which renovation, major rehabilitation, or conversion of a building is to be assisted under this Agreement, other than by grant amounts allocated to States under 24 C.F.R. Section 576.43, shall be located in an area that has been identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, unless: (A) either (i) the community in which the area is situated is participating in the National Flood Insurance Program and the regulations thereunder (44 C.F.R. parts 59 through 79) or (ii) less than a year has passed since FEMA notification regarding such hazards. C-5 15.b Packet Pg. 490 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with (B) Subrecipient will ensure that flood insurance on the structure is obtained in compliance with Section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001, et seq.). Section 13. Coastal Barriers. Subrecipient shall comply with the Coastal Barrier Resources Act, 16 U.S.C. 3501, which provides that no financial assistance under this Agreement may be made available within the Coastal Barrier Resources System. Section 14. Religious and Political Activities. Subrecipient agrees that Subgrant Proceeds shall be used exclusively for performance of the work required under this Agreement, and that no funds made available under this Agreement shall be used to promote religious or political activities. Further, Subrecipient agrees that it will not perform, nor permit to be performed, any religious or political activities in connection with the performance of this Agreement. 14.1 Primarily Religious Organizations. If Subrecipient is a primarily religious organization, Subrecipient agrees that Subrecipient shall provide shelter and the Services in a manner that is free from religious influences and in accordance with the following principles: (A) Subrecipient shall not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. (B) Subrecipient shall not discriminate against any person applying for shelter or any of the Services on the basis of religion and shall not limit such housing or Services or give preference to persons on the basis of religion. (C) Subrecipient shall (i) provide no religious instruction or counseling, (ii) conduct no religious workshop or services, (iii) engage in no religious proselytizing, and (iv) exert no other religious influence in the provision of shelter or the Services. 14.2 Wholly Secular Private Nonprofit Organizations Established by a Primarily Religious Organizations. If Subrecipient is a wholly secular private nonprofit organization established by a primarily religious organization, Subrecipient shall provide the Services in a manner that is free from religious influences and in accordance with the principles set forth in Section 14.1. If Subrecipient elects to enter into a contract with the religious organization to provide shelter or the Services, the religious organization must agree in the contract to carry out its contractual responsibilities in a manner free from religious influences and in accordance with the principles set forth in Section 14.1. Section 15. Reversion of Assets. Upon the expiration or termination of this Agreement, Subrecipient shall transfer to City any CDBG Funds on hand and any accounts receivable attributable to the use of CDBG Funds. If at the time of the expiration or termination of this Agreement there is under the control of Subrecipient any real property that was acquired or improved in whole or in part with CDBG Funds in excess of Twenty-Five Thousand Dollars ($25,000), then such real property shall either be: C-6 15.b Packet Pg. 491 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with (A) used to meet one (1) or more of the national objectives set forth in 24 C.F.R. §570.208 for not less than five (5) years after the date of expiration or termination of this Agreement, or such longer period of time as determined appropriate by City; or (B) disposed of, within five (5) years after the date of expiration or termination of this Agreement, in a manner which results in City being reimbursed in the amount of the then current fair market value of said real property less any portion thereof attributable to expenditure of non-CDBG funds for said acquisition or improvement. Section 16. Program Income. Any Program Income received by Subrecipient shall be returned to City. Any Program Income on hand when this Agreement expires or received after the expiration of this Agreement shall be paid to City as required by 24 C.F.R. 570.503(8). Section 17. No Disability. Subrecipient certifies and agrees that it is under no contractual or other disability which would prevent it from complying with all pertinent laws and regulations. Section 18. Patents and Copyrights. Subrecipient acknowledges and agrees that HUD reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for Federal Government purposes: (A) The copyright in any work developed under the Subgrant or this Agreement; (B) Any rights of copyright to which Subrecipient purchases ownership with Subgrant Proceeds; (C) The patent for any invention developed under the Subgrant or this Agreement; and (D) Any rights in any patent to which Subrecipient purchases ownership with Subgrant Proceeds. Section 19. Records, Reporting and Monitoring. 19.1 Records and Reports. Subrecipient shall prepare and submit financial, program progress, monitoring, evaluation, personnel, property and financial records and other reports as required by City and in the format acceptable to City to assure proper accounting of all Federal and non-Federal project funds. Subrecipient shall furnish such information which, in the judgment of City’s Representative, may be relevant to questions of compliance with contractual conditions hereunder or granting agency directives, or with the effectiveness, legality and goals of the program. Subrecipient will establish a record keeping system which is consistent with Title 24 Code of Federal Regulations Sections 570.110. Such records shall be maintained and available to City for at least three (3) years following the completion of the program, at a minimum, and in the event of litigation, claim, or audit, the records shall be retained until all litigation, claims, and audit findings involving the records have been fully resolved. C-7 15.b Packet Pg. 492 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with Subrecipient will submit quarterly reports to City specifying Program Income earned. Each report shall contain, or be accompanied by, an itemized statement showing all information required by City, including, without limitation: (A) The amount expended or incurred by Subrecipient and due and payable for the Subrecipient’s Services for such reporting quarter. (B) The revenue generated by Subrecipient and the source of such revenue for each reporting quarter. (C) A statement showing for each reporting quarter: (i) a description of each of the Clients serviced, (ii) the number of the Clients receiving shelter at the Shelters, (iii) the type of counseling session conducted, the number of each type of counseling sessions conducted, and the number of the Clients attending each such counseling session, (iv) the type of educational sessions conducted, the number of each type of educational session conducted, and the number of the Clients attending each such educational session, and (v) a quarterly narrative which specifies any additional services provided. The quarterly report for the last quarter of the fiscal year ending June 30 shall also include Subrecipient’s financial statement for the immediately preceding year, accompanied by an annual audit report of Subrecipient’s financial statement for the immediately preceding year. Each report shall be certified as complete and correct by the executive director of Subrecipient. 19.2 Monitoring. City will conduct periodic program monitoring reviews. These reviews will focus on the extent to which the planned program has been implemented and measurable goals achieved, effectiveness of program management, and impact of the program. Authorized representatives of City and HUD shall have the right of access to all activities and facilities operated by Subrecipient under this Agreement. Facilities include all files, records, and other documents related to the performance of this Agreement. Activities include attendance at staff, board of directors, advisory committee, and advisory board meetings and inspection by City and HUD representatives. Subrecipient shall ensure that its employees and board members furnish such information as, in the judgment of City and HUD representatives, may be relevant to the question of compliance with contractual conditions and HUD directives, or the effectiveness, legality, and achievements of the program. 19.3 Accounting. Subrecipient shall establish, and maintain on a current basis, an adequate accrual and accounting system in accordance with generally accepted accounting principles and standards. 19.4 Audits. Subrecipient is required to arrange for an independent financial and compliance audit annually for each fiscal year Federal funds are received under this Agreement. Audits must be in compliance with C.F.R. 2 Part 200. An audit may be conducted by Federal, State, or local funding source agencies as part of City’s audit responsibilities. The results of the independent audit must be submitted to City within thirty (30) days of completion. Within thirty (30) days of the submittal of said audit report, C-8 15.b Packet Pg. 493 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with Subrecipient shall provide a written response to all conditions of findings reported in said audit report. The response must examine each condition or finding and explain a proposed resolution, including a schedule for correcting any deficiency. All conditions or finding corrective actions shall take place within six (6) months after receipt of the audit report. City and its authorized representatives shall at all times have access for the purpose of audit or inspection to any and all books, documents, papers, records, property, and premises of Subrecipient. Subrecipient staff will cooperate fully with authorized auditors when they conduct audits and examinations of Subrecipient’s program. If indications of misappropriation or misapplication of the funds granted under this Agreement cause City to require a special audit, the cost of the audit will be encumbered and deducted from the Subgrant. Should City subsequently determine that the special audit was not warranted, the amount encumbered will be restored to the Subgrant. Should the special audit confirm misappropriation or misapplication of funds, Subrecipient shall promptly reimburse City the amount of misappropriation or misapplication. In the event City uses the judicial system to recover misappropriated or misapplied funds, Subrecipient shall reimburse City for legal fees and court costs incurred in obtaining the recovery. Subrecipient agrees that in the event the program established hereunder is subjected to audit exceptions by appropriate federal audit agencies, it shall be responsible for complying with such exceptions and paying City the full amount of City’s liability to the funding agency resulting from such audit exceptions. 19.5 Confidentiality of Records. Subrecipient shall adhere to the requirement of the National Affordable Housing Act (Pub. L.101-625, November 28, 1990) contained in Section 832(e)(2)(c) that grantees (i) develop and implement procedures to ensure the confidentiality of records pertaining to any individual provided family violence prevention or treatment services under any project assisted” under the CDBG Program and (ii) that the address or location of any family violence shelter project assisted under the CDBG Program will, except with written authorization of the person or persons responsible for the operation of such shelter, not be made public. Section 20. Property Acquisition During Term. 20.1 Non-Expendable Property. A record shall be maintained by Subrecipient for each item of non-expendable property acquired for this program with Subgrant Proceeds. This record shall be provided to City as well as being available for inspection and audit upon the request of City. Non-expendable property means tangible personal property having a useful life of more than one (1) year and an acquisition cost of Three Hundred Dollars ($300.00) or more per unit. Subrecipient shall not purchase or agree to purchase non- expendable property without the prior written approval of City. Upon completion or early termination of this Agreement, City reserves the right to determine the final disposition of such non-expendable property in compliance with applicable laws and regulations. Such disposition may include, but is not limited to, City taking possession of such non-expendable property. 20.2 Expendable Property. Expendable property refers to all tangible personal property other than non-expendable personal property. Subrecipient shall not purchase or C-9 15.b Packet Pg. 494 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with agree to purchase expendable personal property at a cost of Three Hundred Dollars ($300.00) or more per unit without the prior written approval of City. 20.3 Purchase or Lease of Non-Expendable Property or Equipment. Subrecipient shall obtain three documented bids prior to purchasing or leasing any non- expendable property or equipment over Three Hundred Dollars ($300.00) in unit value. Subrecipient shall purchase or lease from the lowest responsive and responsible bidder. All equipment that has a purchase or lease price of over Fifty Dollars ($50.00) in unit-value and life expectancy of more than one (1) year shall be properly identified and inventoried and shall be charged at its actual price. Such inventory shall be provided to City as well as being available for inspection and audit upon the request of City. Section 21. Travel and Conference Restrictions. Subrecipient covenants and agrees that travel and conference expenses will not be paid for by funds provided through this Agreement. Section 22. Privacy. Subrecipient agrees and shall ensure that no information about or obtained from any person receiving services hereunder shall be voluntarily disclosed in any form identifiable with such person without first obtaining the written consent of such person. C-10 15.b Packet Pg. 495 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with EXHIBIT D DEFINITION OF PROGRAM INCOME “Program Income” means gross income received by the recipient or a subrecipient directly generated from the use of CDBG Funds. When such income is generated by an activity that is only partially assisted with CDBG Funds, the income shall be prorated to reflect the percentage of CDBG Funds used. Program income includes, but is not limited to the following: (a) Proceeds from the disposition by sale or long term lease of real property purchased or improved with CDBG Funds; (b) Proceeds from the disposition of equipment purchased with CDBG Funds; (c) Gross income from the use or rental of real or personal property acquired by the recipient or a sub-recipient with CDBG Funds, less the costs incidental to the generation of such income; (d) Gross income from the use or rental of real property owned by the recipient or a sub-recipient that was constructed or improved with CDBG Funds, less the costs incidental to the generation of such income; (e) Payment of principal and interest on loans made using CDBG Funds; (f) Proceeds from the sale of loans made with CDBG Funds; (g) Proceeds from the sale of obligations secured by loans made with CDBG Funds; (h) Interest earned on funds held in a revolving fund account; (i) Interest earned on program income pending disposition of such income; and (j) Funds collected through special assessments made against properties owned and occupied by households not of low and moderate income, where such assessments are used to recover all or part of the CDBG portion of a public improvement. Program income does not include interest earned (except for interest described in 570.513) on cash advances from the U.S. Treasury. Such interest shall be remitted to HUD for transmittal to the U.S. Treasury and will not be reallocated under section 106 or (d) of the Act. Examples of other receipts that are not considered program income are proceeds from fund-raising activities carried out by sub-recipients receiving CDBG assistance; funds collected through special assessments used to recover the non-CDBG portion of a public improvement; and proceeds from the disposition of real property acquired or improved with CDBG Funds when such disposition occurs after the applicable D-1 15.b Packet Pg. 496 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with time period specified in 570.503(b)(8) for sub-recipient controlled property or 570.505 from recipient controlled property. D-2 15.b Packet Pg. 497 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACH 1- AGREEMENT (5721 : Adopt CDBG Subrecipient Agreement with CITY OF SAN BERNARDINO Economic Development & Housing Department 290 N. D Street San Bernardino, CA 92401 DRAFT CDBG OWNER OCCUPIED RESIDENTIAL REHABILITATION PROGRAM POLICIES AND PROCEDURES 15.c Packet Pg. 498 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Table Of Contents I.General Provisions 1 A.Purpose 1 B.Program Eligibility 1 C. Program Funding Source 1 D.Program Administrator 1 E. Funds for Improvements 1 F.Environmental Clearance 1 G.Davis Bacon & Related Acts (DBRA)2 H.Section 3 2 I.Equal Opportunity 2 J. Relocation 2 K.Applicability of Federal State and Local Regulations/ Authority to administer 2 II.Program Assistance 3 A.Residential Rehabilitation Program Assistance 3 B.Terms and Obligations 3 III.Eligibility Requirements 4 A.Ownership 4 B.Property Title 4 C. Principal Residence 4 D.Location 4 E.Homeowners Insurance 4 F.Household Income 4 G.Credit and Debit Ratios 4 H.Loan to Value Ratios 4 I.Improvements 5 J.Conflict of Interest 5 K.Interest List and Program Marketing 5 IV.Lead Based Paint Requirements 5 V.Required Record Keeping and File Retention 6 VI.Program Changes 6 VII.Program Database 7 VIII.Exhibits 8 IX.Figures 12 15.c Packet Pg. 499 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient General Provisions A.Purpose The City of San Bernardino initiated the Owner Occupied Residential Rehabilitation Program (OORRP or Program) to comply with the regulatory requirements of 24 CFR 570.202(c); improve the quality of life for income- eligible households by assisting with property repairs and improvements necessary to make their homes decent, safe and attractive; to preserve the City’s housing stock; to arrest and prevent the development of blighted areas; identify and arrest the decline of deteriorating/deteriorated areas. The following policies and procedures serve as the minimum administrative requirements for the OORRP and are intended to reinforce and not supplant prudent underwriting practices, when considering Program applications. B.Program Eligibility Per §57.202(c), code enforcement activities meet the national objective of benefit to low and moderate income persons on an area basis under § 570.208(a)(1) when carried out in deteriorated or deteriorating areas and when carried out in conjunction with public or private improvements, rehabilitation, or services that may be expected to arrest the deterioration of the area. The City carries out Code Enforcement activities in the deteriorating areas shown in Figure 1 and this RRP will assist in arresting deterioration in those areas. The buildings inspected by Code Enforcement are located in a primarily residential areas where a minimum of 51 percent of the residents in those areas are low- and moderate-income. C.Program Funding Source The primary funding source for the Program is Community Development Block Grant (CDBG) funds provided to the City from the US Department of Housing and Urban Development (HUD) as identified in the City’s Consolidated Plan. D.Program Administrator Neighborhood Partnership Housing Solutions, Inc. (NPHS) has been selected as the Program Administer (PA) for the City’s Owner Occupied Residential Rehabilitation Program. Application, intake and verification procedures will be in accordance with the established PA’s policies and procedures. Program administration fee shall be actual costs incurred but cannot exceed 20% of each Grant/Loan amount. E.Funds for Improvements CDBG funds shall be budgeted annually through the City’s Consolidated Plan/Annual Plan process and regular budget process. Program funds are not guaranteed and subject to availability. F.Environmental Clearance Use of HUD funds requires all programs and activities to be cleared per 24 CFR Part 58. The RRP is categorically excluded per 58.35(a)(3)(i) subject to 58.5 and requires a Tiered Environmental Review as follows: First Tier will cover the 15.c Packet Pg. 500 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient program on a eligible area basis and will include clearance of coastal zones, environmental justice, air quality, noise, sole source aquifer, endangered species, wild and scenic rivers, farmlands, wetlands, and airport clear zone. The Second Tier will focus on the specific property to be rehabilitated and will cover the historic property, SHPO, floodplain, explosives, and toxic sections. Emergency repairs are not subject to SHPO concurrence. G.Davis Bacon & Related Acts (DBRA) Per Section 110 of the Housing and Community Development Act of 1974 – DBRA does not apply to rehabilitation of residential property designed for fewer than 8 families. H.Section 3 Section 3 does not include contractors or any intended beneficiary under the HUD program to which Section 3 applies, such as a homeowner or a Section 3 resident. As such, the funds used on the Program are not subject to the Section 3 Requirements. I.Equal Opportunity Applicants will not be discriminated against on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, or any other arbitrary basis. In addition, applicants may not discriminate in the use, occupancy, and awarding of contracts with respect to the property to be rehabilitated with the assistance of an OORRP loan. J. Relocation Relocation is not contemplated as a part of this rehabilitation activity, however if an unanticipated event occurs which requires temporary relocation, such relocation shall be performed in compliance with the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 and Section 104(d) and may be paid for using program funds. K.Applicability of Federal State and Local Regulations/ Authority To administer While all Program funds are subject to the requirements of these Policies and Procedures, there may be additional special provisions and limitations depending on changing requirements of the funding source. Consequently, additional requirements not shown in these Guidelines may apply and, thus, the Economic and Housing Development Director (Director) or her designee may amend these Guidelines from time to time to reflect changes in the requirements of the funding source for this Program as required. II.Program Assistance 15.c Packet Pg. 501 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Income and location-qualified Applicants shall receive assistance in the following order 1) Emergency 2) Health, Safety, & Accessibility 3) Weatherization and Energy Efficiency and 4) Home Improvement, subsequent to the submittal of a complete application inclusive of all required documentation as provided by the PA. A.Residential Rehabilitation Program Assistance The Program Administrator (PA) provides single family (up to two units) homeowners at or below 80% of the Area Median Income (AMI) with home improvement loans at a zero interest rate. The term of the loan is 10 years. Should the housing unit be sold during the term of the loan then a portion of the loan must be repaid to the City. Should the housing unit be sold within the first five years of the ten year term, then the entire loan is due to the City. At year six of the loan, twenty percent (20%) of the loan will be forgiven at the annual anniversary date of the loan. Because market interest rates fluctuate over time, the City reserves the right to increase its below-market interest rate up to three percent (3%) simple interest. If interest rates are increased only new loans will be affected. B.Terms and Obligations (i)Home Improvement Deferred Payment Loans (Loan) Target Income Group: < 80% of area median income Minimum Amount $2,500 Maximum Amount: $40,000 Interest Rate: Zero percent (0%) Project Location: Citywide Repayment: No monthly payments. Loan due in full on twentieth (10th) anniversary of the recordation of the City’s Deed of Trust or, if earlier, the loan shall be repaid to the City upon the earliest occurrence of the following:1) sale, 2) transfer of title of the property, 3) the Applicant ceases to reside in the Principal Residence, 4) the Applicant refinances the property for cash-out or equity line of credit. 5) The property owner does not maintain property improvements up to City code, 6) Adequate property insurance is not maintained. Security: The City’s assistance will be in the form of a secured mortgage recorded no lower than a third Deed of Trust; however, the City may agree to a forth position only if the Beneficiary is the City or another government agency whose loan will be forgiven or paid off during the first five years of the City’s loan term. Eligible Improvements: Exterior work to help preserve or protect 15.c Packet Pg. 502 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient structures; Interior work to make a structure more livable; and Weatherization and energy conservation items. See Section VII for a more detailed explanation of eligible and ineligible improvements. 15.c Packet Pg. 503 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient III.Eligibility Requirements A.Ownership The Applicant must be listed on the Grant Deed. B.Property Title Title of the property shall be free of all liens or encumbrances which, in the judgement of the City, that may be detrimental to the security of the City’s Loan. C. Principal Residence Single-family homes, condominiums and townhomes are eligible for OORRP assistance. D.Location The dwelling unit must be located within the San Bernardino city limits. E.Homeowners Insurance The homeowner shall maintain fire insurance coverage on the property and flood insurance if the property is within a floodplain. The minimum insurance coverage must be equal to the value of the indebtedness on the property. The owner is also to keep property taxes current during the term of the loan. F.Household Income Family gross annual income may not exceed the moderate-income limits defined as up to 80 percent of the San Bernardino County area median income (AMI) adjusted for household size and determined annually by the U.S. Department of Housing and Urban Development (HUD). For calculating household income, the Part 5 definition of income (24 CFR Part 5.609) must be used. The PA may use the CPD Income Eligibility Calculator to determine eligibility. The calculator can be found at https://hudexchange.info/incomecalculator/. G.Credit and Debt Ratios As part of the application process, a credit report will be pulled for each applicant to determine the applicant’s ability to repay the deferred payment loan should the loan not be maintained throughout the 10 year loan term. Late mortgage payments issued in the past twelve months is not allowed and will result in the denial of the application. H.Loan to Value Ratios Total indebtedness against the property shall not exceed 90% of the “after rehabilitation” value of the property as determined by “Estimates of Value”. 15.c Packet Pg. 504 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Estimates of Value may be obtained by collect a list of recently sold properties of comparable size, condition, and features within the neighborhood or City. I.Improvements In order to qualify and to be eligible, no work shall commence prior to: I.Application approval; II.Full execution of RRP Agreement; III.Full execution of a Construction Agreement for work to be done on the Principal Residence and; IV.Rehabilitation Environmental Review Record approval V.Issuance of a Notice to Proceed by the Program Administrator. J.Conflict of Interest No member of the governing body of the Program Administrator or the City and any other official, employee, or agent of the City Government who exercises policy, decision-making functions or responsibilities in connection with planning and implementation of the program shall be directly or indirectly eligible for OORRP assistance. This restriction shall continue for two (2) years after an individual’s relation with the Program Administrator or City ends. K.Interest List and Program Marketing Loans are issued on a first-come, first-serve basis. When funding is exhausted, homeowners interested in participating in the OORRP will be placed on an interest list. As program funding becomes available, the PA will contact homeowners on the interest list by email, mail or telephone. All outreach efforts will be done in accordance with state and federal regulations pertaining to fair housing and equal opportunity to assure non- discriminatory treatment, outreach and access to the Program. The Fair Housing logo will be placed on all outreach materials. Flyers or other outreach materials will be provided in English and Spanish, which is the primary language of a significant portion of City residents. IV.Lead Based Paint Requirements As part of the program application, owners are provided with information about the dangers of lead- based paint. Evidence of receipt of this information is maintained in the project file. The lead-based paint requirements can have a significant impact on the final scope of work. If the housing unit in question was built prior to January 1, 1978, the lead- based paint requirements apply. Based on the amount of subsidy provided to the project, different levels of action are required by the Program Administrator, as shown in the following table: 15.c Packet Pg. 505 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient <$5,000 $5,000-$25,000 >$25,000 Approach to Lead Hazard Evaluation and Reduction Do no harm Identify and control Lead hazards Identify and Abate Lead Hazards Notification Yes Yes Yes Lead Hazard Evaluation Paint testing of surfaces to be disturbed by rehabilitation Paint testing of surfaces to be disturbed by rehabilitation AND Risk assessment Paint testing of surfaces to be disturbed by rehabilitation AND Risk assessment Lead Hazard Reduction Repair surfaces disturbed during rehabilitation, use lead-safe work practices, clearance test of work site upon completion. Interim controls, lead- safe work practices, clearance test of unit upon completion Complete abatement, lead- safe work practices, clearance test of unit upon completion Any required lead-based paint inspections (initial and clearance) will be performed by the Program Administrators lead-based paint testing firm. The cost of initial testing and clearance will be included as part of the owner’s loan or grant. In the event that an initial clearance test fails, it will be the contractor’s responsibility to pay for supplemental clearance tests. The contractor engaged to encapsulate and/or stabilize lead-based paint will not be paid until evidence of a lead-based paint clearance is presented to the City. Lead-based paint inspection reports and risk assessments (as applicable) will be provided to the owner and made available to contractors as an appendix to the Work Description. V.Required Record Keeping and File Retention Files will be maintained to document the significant history of OORRP activities for all projects. The Program Administrator must maintain these files for a period not less than five (5) years following completion of the work. Project Files must include at a minimum: I.The application and all supporting documentation related to income and owner-occupancy, and property information reports. II.Official correspondence and the Rehabilitation Environmental Review. III.Inspection reports, lead-based paint reports, before and after photographs, work descriptions, internal estimate, bid evaluation, contractor clearances, contractor insurance, contractor business license, contractor W-9, recorded Notice of Completion. IV.RRP Agreement, construction contract agreement, all loan disbursement information including invoices, payment releases, lien releases, warranties, and copies of payment checks, signed off City Permits. V.Loan underwriting materials including the appraisal, title report, credit report, and all executed loan documents. VI.Documentation on requests for demand, reconveyance, subordinations, and defaults. VI.Program Changes The Director or her designee, with consultation with legal counsel, may modify the program to ensure timely expenditures of program funds and to 15.c Packet Pg. 506 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient otherwise meet the intent of the Program to assist households at or below 80% of the Area Median Income for San Bernardino County. VII.Program Database Integrated Disbursement & Information System (IDIS) is the U.S. Department of Housing and Urban Development drawdown and reporting system. The At the issuance of the Notice of Completion and final payment of the rehabilitation project, the City will enter relevant participant, property, and loan information into IDIS to meet the federal reporting requirements. 15.c Packet Pg. 507 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient VIII.Exhibits 15.c Packet Pg. 508 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient EXHIBIT A – Rehabilitation Standards 1. Emergency Repairs Emergency repairs are defined as a repair that poses a risk to you, the public or the structure of the building. Examples of emergency repairs include gas leaks, total loss of electricity or a dangerous electrical fault, total loss of water supply or a major leak, blocked drain or serious leak of sewage, or loss of heating. Emergencies are handled on a case-by-case basis and can take precedence over applicants on the wait list. The Program Administrator, in conjunction with the Economic and Housing Development Department and applicable City departments is responsible for determining if a particular housing problem is an emergency. 2. Code Correction Repairs At a minimum, at the completion of each project, all health and safety issues and all code violations shall be corrected. Every loan made under the OORRP shall be used to finance rehabilitation standards that address all health and safety issues and code violations, and no loan may be approved which would permit a dwelling unit after rehabilitation to be out of compliance with applicable codes. Applicable codes include the San Bernardino Municipal Code, Uniform Building Code, the National Electrical Code, the Uniform Plumbing Code, the Uniform Mechanical Code, and Chapters 5-10 of the Uniform Housing Code, ADA Section 504, and relevant sections of Title 24 that pertain to disability access. In addition to requiring that the building be brought into compliance with applicable codes, the Program requires specific additional upgrades in all projects. These include: upgrade of electrical equipment grounding and bonding system; GFCI replacement in kitchen, bathroom and exterior areas; fire extinguishers; smoke detector upgrade to current Uniform Building Code; and installation of carbon monoxide detectors; and exterior painting, if needed. All work performed must comply with the Program’s Rehabilitation Standards. 3. Lead Based Paint Repairs Control or abatement of defective lead based paint surfaces will be included in the property rehabilitation where applicable. A lead based paint inspection report may be required of any home built before 1978. 4. Asbestos Removal Removal of materials containing asbestos, if necessary, will be included as part of the property rehabilitation. 5. Accessibility Improvements Properties occupied by a disabled household member(s) qualifies for services aimed at removing architectural barriers under this Program. In cases where it is not structurally or financially feasible to bring units into full compliance with Title 24 and Section 504, limited repairs or improvements increasing overall accessibility may be undertaken provided 15.c Packet Pg. 509 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 10 | Pa g e such repairs are conducted under a plan check, permit, and inspection process by the City’s Community Development Department. Examples of eligible improvements that will alleviate architectural barriers include, but are not limited to: 6. ELIGIBLE IMPROVEMENTS In addition to the above-noted improvements, program funds are available for rehabilitation improvements that are physically attached and permanent in nature as follows: 1.Repairs that remedy existing nonconforming uses such as garage conversions, additions, etc. 2.Exterior work to help preserve or protect structures, roofing, siding (if significantly damaged), re-leveling, bracing (including earthquake bracing), repair/replacement of screens/windows, doors and door locks, structural and/or foundation damage, replacement of deteriorated attached porch and step structures (i.e., Mobile Home porches made of plywood). 3.Interior work to make a structure more livable and repair/replace/restore important parts such as plumbing (i.e., re-pipe and replacement of fixtures), damaged flooring, faulty or inadequate heating/cooling systems, inoperable built-in appliances, damaged ceilings, water heaters, electrical wiring and service, painting (if walls are damaged). 4.Weatherization and energy conservation items such as insulation, caulking, weather-stripping. Fumigation and treatment of termites and pest control. 5.Modifications which aid the mobility of the elderly and physically disabled such as shower units with seats, lever hardware, retrofitting toilets to achieve adequate height, moving power points and light switches, ramping, reconstructing doorways, lowering sinks in kitchens and bathrooms. 6.Testing for the presence of lead-based paint and associated control/abatement, as required. 15.c Packet Pg. 510 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 11 | Pa g e 7.INELIGIBLE IMPROVEMENTS 1.Installation and/or repair of recreational items such as barbecues, bathhouses, greenhouses, swimming pools, saunas, television antennas, tennis courts. 2.Luxury items such as carpeting (other than water-damaged or carpeting that is not decent, safe or sanitary), burglar alarms, burglar protection bars, dumbwaiters, kennels, murals, flower boxes, awnings, patios, decks and storage sheds/workshops. Any freestanding appliances such as microwave ovens, refrigerators, dishwashers, and fans. 3.Room additions or extensions 4.Other items deemed ineligible by the Director or his/her designee. 8.PRIORITY OF IMPROVEMENTS Improvements will be approved and made to the property in the following order of importance: 1.Emergency repairs. 2.All violations related to health and safety standards. 3.All San Bernardino Municipal and building code violations. 4.Repair or replacement of major systems including but not limited to roof, electrical, plumbing, and air conditioning/heating systems. 5.Energy efficient items such as new dual glazed windows, insulation, energy efficient light fixtures, low flow toilets. 6.Exterior and interior incipient deficiencies. An incipient deficiency exists if, at the time of inspection, it appears that the physical condition of an element in the structure may fail or deteriorate into an actual deficiency in the near future (within 1-2 years). 7.General property improvements. 9.STANDARDS FOR REHABILITATION OF HISTORIC PROPERTIES On historic structures included in the OORRP, special requirements must be met under the National Environment Policy Act and the National Historic Preservation Act of 1966, as amended. OORRP projects will be submitted for review to the State of California, Office of Historic Preservation, when a unit is within a designated Historic District, identified as a Historically Significant Structure, on the list of Structures Of Historical Interest or is more than 50 years old. Historic properties shall be rehabilitated in accordance with the most appropriate standards based on the age and architecture of the structure. The basic principle is to preserve the character of the exterior spaces and surfaces. This generally entails the submission of the Work Description to SHPO for review and comment. 15.c Packet Pg. 511 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 12 | Pa g e IX.Figures I.City of San Bernardino Owner Occupied Residential Rehabilitation Loan Program Application 15.c Packet Pg. 512 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient CCIITTYY OOFF SSAANN BBEERRNNAARRDDIINNOO OOWWNNEERR OOCCCCUUPPIIEEDD RREESSIIDDEENNTTIIAALL RREEHHAABBIILLIITTAATTIIOONN LLOOAANN PPRROOGGRRAAMM A home repair grant for qualified homeowners Application Submit completed application and all requested information to: Mail, Email or Fax to: ATTN: Deyanira Pelayo-Brito 9551 Pittsburgh Ave Rancho Cucamonga, CA 91730 Email: Deyanira@nphsinc.org Fax: 909-545-8692 Phone: (909) 204-7465 Grant funds are available on a first-come, first-serve basis. Grant is contingent upon the availability of funds and not guaranteed. 15.c Packet Pg. 513 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Dear Homeowner(s): Neighborhood Partnership Housing Services in partnership with the City of San Bernardino is pleased to offer the San Bernardino Owner Occupied Residential Rehabilitation Loan that assists income qualified households by providing a forgivable loan to rehabilitate residential properties throughout the City of San Bernardino. The program is designed to assist qualified low income homeowners with household incomes not exceeding the program income limits. This will allow qualified households to make necessary repairs on their owner-occupied single- family homes. The goal of the program is to allow homeowners to correct health and safety hazards, building code violations, make accessibility improvements, and to provide decent, safe, and sanitary living conditions.  The Program provides assistance in the form of a forgivable loan up to the maximum total amount of $30,000 for eligible homeowners.  The loan has no interest and is forgiven after a period of 10 years if a homeowner complies with the program.  The loan will become due in the event the owner no longer owner occupies the property as their primary residence during the ten year loan term. Applications are prioritized for funding purposes on a first-come, first-served basis. Therefore, you are required to complete and return the application within 30 days. If after three (3) contact attempts staff has not received your completed application, your file will be closed and your name will be placed at the bottom of the waiting list. Delays can jeopardize the funding since, as stated above, funds are available on a first-come, first-served basis. Staff will go to the next household on the waiting list. Homeowners whose applications have been accepted for this Program will receive a one-time forgivable loan in an amount up to $30,000 for eligible home repairs and in accordance with Program Guidelines and NPHS’ housing rehabilitation standards as set forth in the Housing Code. The finished rehabilitation work must be free of any Health and Safety Code, Building Code, or other State and local code violations and must, at a minimum, meet Section 8 Housing Quality Standards (HQS). Please submit your completed application and all requested information to: Mail, Email or Fax to: ATTN: Deyanira Pelayo-Brito 9551 Pittsburgh Ave Rancho Cucamonga, CA 91730 Email: Deyanira@nphsinc.org Fax: (909)545-8692 Phone: (909) 988-5979 15.c Packet Pg. 514 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient TO BE ELIGIBLE, YOU MUST: 1. Be an individual residing in an owner-occupied single-family property in the City of San Bernardino proper. 2. Be listed on title as the legal owner of the subject property and permanently reside in dwelling of need of repairs. If property is owned by more than one person, all legal owners must execute the necessary covenant agreement documents. 3. Have owned and resided in the dwelling in need of repair no less than one (1) year prior to submitting application. 4. Not own or have interest in any real property other than the subject property. 5. Have a maximum total family income of 80% Area Median Income (AMI) (all adult members of the household must submit income verification for all sources of income) of no more than: 1 person household $37,750 2 person household $43,150 3 person household $48,550 4 person household $53,900 5 person household $58,250 6 person household $62,550 7 person household $66,850 8 person household $71,150 (2018 HUD Income Guidelines for the Community Development Block Grant (CDBG) Program) The San Bernardino Owner Occupied Residential Rehabilitation Loan Program requires the completion of the application and all requested documents be submitted in order to be considered for the program. The following is a list of what information you will be required to provide in order to initially submit a completed application. 15.c Packet Pg. 515 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Checklist PROOF OF HOUSEHOLD MAKE-UP o Copy of California Driver’s license/identification card of ALL homeowners o Copy of the applicant’s most recent three (3) years of Federal Income Tax return and W-2 forms to support the stated household size or a letter from the Internal Revenue Service (IRS) stating you were not obligated to file income taxes for the preceding calendar year, and PROOF OF HOME OWNERSHIP o If you own a Single-family home, please attach a COPY of the recorded Grant Deed, a copy of the most recent Property Tax Bill for your property, and a copy of the most recent Mortgage Statements for your property. PROOF OF RESIDENCY o You must reside at the address named on the application. o Attach a copy of two (2) current, different utility bills (i.e., water, gas, telephone, or electricity bill) to your application. PROOF OF HOMEOWNERS INSURANCE o Copy of the homeowners insurance policy and flood insurance if located in a flood zone PROOF OF INCOME ELIGIBILITY o Provide copies of the most recent three (3) months monthly bank statements/investment statements for all accounts including retirement accounts. If you have more than one bank account, please provide copies of the most recent three (3) months bank statements/investment statements including retirement accounts for each account. Along with the proof of income eligibility documents, provide all applicable documents below: Employed o Provide copies of the most recent three (3) months of paycheck stubs; Self-Employed o Provide copies of YTD profit & loss statement, balance sheet, and cash flow statement; Social Security/disability income o If you are receiving Social Security, annuities, insurance policy benefits, retirement funds, pensions, unemployment, disability or death benefits, worker’s compensation, severance pay, alimony, child support, or Armed Forces income, please attach a copy of the entitlement letter or equivalent; Public Assistance o If the applicant(s) is receiving AFDC, other public assistance, or welfare income a copy of the benefit statement shall be required from the Department of Social Services or other agency that states the amount of benefits; NOTE: Applications without the required proof of HOUSEHOLD, OWNERSHIP, RESIDENCY, HOMEOWNERS INSURANCE, and INCOME as described above will be considered incomplete. All incomplete applications will not be processed. Staff will review your completed application to determine whether you are eligible for assistance. At this time, please DO NOT request bids or hire a contractor. If you are deemed eligible to participate in the program you will be notified. 15.c Packet Pg. 516 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient APPLICATION ( ) (1) Applicant Name Mr. Mrs.  Ms. Social Security No. Home Phone ( ) (2) Co-Applicant Name Social Security No. Home Phone Street City State Zip Code (3) Property Address Street City State Zip Code (4) Mailing Address (If different from above) (5) Total Number of Persons in household: __________ List all OTHER members who live in your home at the time of application. Full Name Age Relation to Owner(s) ________________________________________ ______________ _______________________________ ________________________________________ ______________ _______________________________ ________________________________________ ______________ _______________________________ ________________________________________ ______________ _______________________________ (6) Total Monthly Gross Income $_____________________ Source of Income: (Please indicate amount) [ ] Social Security Income (SSI) $_____________________ [ ] Disability Income (SSI) $_____________________ [ ] Workers Compensation $________________________ [ ] Pension (SSI) $_____________________________ [ ] Alimony/Child Support $_________________________ [ ] Investment $______________________________ [ ] Employment Income $___________________________ [ ] Self Employment Income $___________________ [ ] Other Income: $________________________________ (7) What is the age of the head of household? (Please check only one) [ ] Under 18 years [ ] 18 to 24 years [ ] 25 to 44 years [ ] 45 to 59 years [ ] 60 to 64 years [ ] 62 years or older (8) Marital Status [ ] Married [ ] Divorced [ ] Legally Separated [ ] Widower/Widow [ ] Single (9) What is the gender of the head of household? [ ] Male [ ] Female (10) Is the applicant or co-applicant handicapped? [ ] Yes [ ] No (11) Is the applicant or co-applicant permanently disabled? [ ] Yes [ ] No Neighborhood Partnership Housing Services Inc. does not discriminate on the basis of disability status in the admission or access to, or treatment or employment in, its federally assisted programs and activities. Section 504 (24 CFR, part 8 dated June 2, 1988). (12) I/We currently: [ ] Own my/our house free and clear [ ] Have a mortgage to pay off [ ] Lease with an option to buy [ ] Other: ______________________ (13) Are you a Veteran of the U.S Armed Forces? [ ] Yes [ ] No (14) Are you the OWNER-OCCUPANT of the property to be repaired? [ ] Yes [ ] No (15) How many years have you occupied the home? [ ] Less than 1 year [ ] 1 to 5 yrs [ ] Over 5 yrs [ ] Not an Occupant 15.c Packet Pg. 517 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient (16) My/Our residence is a: [ ] Single-Family Home [ ] Mobile Home [ ] Unit in a Co-Op or Condominium [ ] Other: (17) How many bedrooms in your home? [ ] 1 bedrooms [ ] 2 bedrooms [ ] 3 bedrooms [ ] 4 bedrooms [ ] 5 or more bedrooms (18) What year was the house built? _________________ (19) What year did you buy the house? ______________ (20) How did you first hear about this Program? [ ] Referral from City of San Bernardino [ ] Referral from Public Housing Waiting List [ ] Friend/ Relative [ ] Community Bulletin Board/Flyers [ ] Referral from another Department/Agency [ ] Other: (21) Have you had this service before? [ ] Yes [ ] No If yes, what year? ______________ (22) Briefly describe the repairs needed. Attach a separate sheet if more room is necessary. 1. ________________________________________________________________________________________________ ________________________________________________________________________________________________ 2. ________________________________________________________________________________________________ ________________________________________________________________________________________________ 3. ________________________________________________________________________________________________ ________________________________________________________________________________________________ 4. ________________________________________________________________________________________________ ________________________________________________________________________________________________ 5. ________________________________________________________________________________________________ ________________________________________________________________________________________________ 6. ________________________________________________________________________________________________ ________________________________________________________________________________________________ 7. ________________________________________________________________________________________________ ________________________________________________________________________________________________ Application Affidavit You are hereby signing this Application Affidavit under the False Claims Act, 31 U.S.C. §§ 3729-3733, those who knowingly submit, or cause another person or entity to submit, false claims for payment of government funds are liable for three times the government’s damages plus civil penalties of $5,500 to $11, 000 per false claim. Applicant Signature: ________________________ Co-applicant Signature: ______________________________ Applicant Name:___________________________ Property Address:____________________________________ 15.c Packet Pg. 518 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient INCOME TAX AFFIDAVIT I (we) the undersigned, being first duly sworn, state the following: (Please check all that apply) (Check and complete Number 1 & 2 if you were not required by law to file a Federal Income Tax Return.) 1. I (we) hereby certify that I (we) was (were) not required by law to file a Federal Income Tax Return for the following year(s) __________ for the reason(s) below: Form 4506-T “Request for Transcript of Tax Return” must be submitted to the IRS for verification of non-filing status. 2. I (we) certify that I (we) cannot produce a copy of a signed federal tax return. I (we) agree that I (we) will provide NPHS with the following: ____ A Transcript of Tax Return by completing Form 4506T (Check and Complete Number 3 if you are providing the City with acceptable tax documentation other than copies of tax fillings.) 3. I (we) certify that I (we) filed Form 1040EZ /1040A/1040 for Tax Year (s) . I am providing this certification in addition to a tax account summary provided by the IRS since I cannot produce a copy of the tax filing. (Check and complete Number 4 only if the Owner Occupied Residential Rehabilitation Application is submitted between January 1 and April 15 and you have not yet filed a Federal Income Tax Return for the previous year, but intend to file.) 4. I (we) hereby certify that I (we) have not yet filed a Federal Income Tax Return for the previous tax year. I hereby certify that the information submitted to NPHS is in accordance and consistent with the tax documentation which I (we) intend to submit for the previous tax year. I (we) agree that I will provide NPHS with a copy of my tax filing documents no later than April 16 of this year. CERTIFICATION OF ALL APPLICANTS By my (our) signature below, I (we) certify that the above information is true. I (we) understand that NPHS/ City of San Bernardino can revoke any funds granted upon discovery of an Applicant’s material misstatement, whether negligent or fraudulent. Signature of Applicant Date Signature of Applicant Date 15.c Packet Pg. 519 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient HOUSEHOLD SIZE AFFIDAVIT I (we) the undersigned, being first duly sworn, state the following: (Please check all that apply) 1. I (we) hereby certify that my (our) household size is _________and income limits do not exceed the established limits for household size indicated in the Owner Occupied Residential Rehabilitation Loan Program application. (Check and complete Number 2 only if you share ownership of property with someone not residing in the property) 2. I (we) hereby certify that I (we) share title of ownership with someone other than those residing in my (our) household on the Owner Occupied Residential Rehabilitation Loan Program application. I (we) hereby certify that the information submitted to NPHS is in accordance and consistent with the tax documentation which I (we) submitted. I agree that I will provide NPHS with a copy of my tax filing documents or proof of non-filing, which will be used to determine household size. Applicant Signature Date Co-Applicant Signature Date 15.c Packet Pg. 520 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient RIGHT OF ENTRY Right of Entry: I/We the undersigned hereby consent to allow authorized representatives of NPHS to enter my/our place of residence for the purpose of evaluating the housing repairs needed described herein. The undersigned and the representatives of NPHS will perform this evaluation jointly. I/We understand NPHS shall receive all repair estimates within 15 calendar days from three (3) licensed contractors following the receipt of a Project Cost Estimate/Bid that is prepared by an authorized representative of NPHS. Failure to do so will result in no further processing of my/our application and transferring committed funds to another eligible project. Please initial here__________/__________. Applicant Signature Date Co-Applicant Signature Date 15.c Packet Pg. 521 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 2018-19 Community Development Block Grant Beneficiary Qualification Statement This form has the purpose of providing information needed to qualify the use of Federal Community Development Block Grant (CDBG) funds for the following projects. This statement must be completed and signed by the person (legal guardian) requesting to receive benefits from the following activities before services will be provided. Agency/Program City Project Program/Service:_____________________________ Other Agency Program/Service:______________________________ Each of the following questions must be answered: A household is a group of related or unrelated persons occupying the same house with at least one member being the head of household. Renters, roomers, or borders cannot be included as household members. 1) How many persons are in your household? 2) Are you a Female Head of Household or reside in a Female Headed Household? Yes No 3) Please indicate how you identify yourself by checking only one (1) of the following choices. Note: If you are part Hispanic, please mark the Hispanic box next to the appropriate ethnic category; all others check Non-Hispanic: 4) Homeless: Yes No Disabled: Yes No Hispanic Non-Hispanic Hispanic Non-Hispanic White Black/African American Asian American Indian/Alaskan Native Black/African American & White American Indian/Alaskan Native & White Asian & White American Indian/Alaskan Native & Black/African American Native Hawaiian/Other Pacific Islander Other 5) Please add up the combined gross income of all persons in your household from all sources of income (For this question a list of 2017 low-income and low-and moderate income categories are presented below – See limited presumed qualifying clientele categories. The amounts represent the 2017/18 HUD income limits for County of San Bernardino). Qualifying Income Sources (please check all that apply). Primary employment: $ SSI/SSDI: $ Secondary employment: $ Child-support: $ Unemployment: $ TANF: $ Food Stamps $ Other: $ I Certify under penalty of perjury that income and household statements made on this form are true. The information you provide on this form is for CDBG program purposes only and will be kept confidential. # of persons 1 person Less than 2 persons Less than 3 persons Less than 4 persons Less than 5 persons Less than 6 persons Less than 7 persons Less than 8 persons Less Than Extremely low  $14,150  $16,460  $20,780  $25,100  $29,240  $33,740  $38,060  $42,380 Very Low Income  $23,600  $27,000  $30,350  $33,700  $36,400  $39,100  $41,800  $44,500 Low Income  $37,750  $43,150  $48,550  $53,900  $58,250  $62,550  $66,850  $71,150 Limited Clientele  abused child  battered spouse  elderly person  homeless person  disabled adult person  illiterate person  migrant farm worker ACKNOWLEDGEMENT AND DISCLAIMER Client: Phone: ( ) Address: City: Zip: Signature: Date: 15.c Packet Pg. 522 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Credit Report Request & Authorization Applicant Personal Information Co-Applicant Personal Information Last Name First MI Last Name First MI SSN Date of Birth Suffix SSN Date of Birth Suffix Address Apt Address Apt City State Zip City State Zip Authorization I authorize NPHS to pull my credit report, and review my credit file in connection with my participation in NPHS' Programs, using an online credit reporting source. (a)Initial if Applicant and Co-Applicant are married (b)Initial if you are authorizing NPHS to process a one-time transaction. Fee to be charged: Single- $25.00. Couples will be charged at the single rate for a total of $50.00. Payments can be made by cash or check only. I understand that information about services provided to me may be used to conduct research and reporting, related to service needs, income supports, education and employment, and program effectiveness. The use of this information for research and reporting may last beyond the actual delivery of current services. My name, social security number, or any other information that would identify me personally will never appear on research or a report. I understand that any intentional or negligent representation(s) of the information contained on this form may result in civil liability and/ or criminal liability under the provisions of Title 18, United States Code, Section 1001. Applicant Signature Date Co-Applicant Signature Date Last Updated 11/15/2017 Staff use only Payment type: □Cash □Check # Report run by: Staff initials 7/16/18 15.cPacket Pg. 523Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient City of San Bernardino Owner Occupied Housing Rehab Program Cover Sheet Applicant: ____________________________________________________________________ Address: ____________________________________________________________________ ____________________________________________________________________ Phone Number: ________________________________________________________________ Is the eligible property a: Single Family Residence Townhome Condominium Is the property within the San Bernardino city limits? Yes No Is the applicant income qualified? Yes No Household annual Income: ______________________ Income level: Extremely Low (30%) Very Low (50%) Low (80%) Number of Persons in Household: _________________ Based on the information provided by the applicant and the eligibility criteria entered above, we find the applicant to be eligible_____ ineligible_____ to participate in the City of San Bernardino Owner Occupied Housing Rehab Program. Reviewer’s Approval: ________________________________ Date: ___________________ Name Printed: ______________________________Title: _____________________________ 7/16/18 15.c Packet Pg. 524 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Date: Pay Stub 1 Pay Stub 1 Pay Stub 2 Pay Stub 2 Pay Stub 3 Pay Stub 3 Pay Stub 4 Pay Stub 4 Average:$0 Average:$0.00 Frequency of pay:Frequency of pay: Annual Income:$0 Annual Income:$0 Monthly Income:$0 Monthly Income:$0 Pay Stub 1 Pay Stub 1 Pay Stub 2 Pay Stub 2 Pay Stub 3 Pay Stub 3 Pay Stub 4 Pay Stub 4 Average:$0.00 Average:$0.00 Frequency of pay:Frequency of pay: Annual Income:$0 Annual Income:$0 Monthly Income:$0 Monthly Income:$0 $0 $0 ?? %AMI Homeowner Income Calculation Monthly Projection: Annual Projection: Borrower: Borrower: Co-Borrower: Co-Borrower: 7/16/18 15.c Packet Pg. 525 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 7/16/1815.cPacket Pg. 526Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient SAN BERNARDINO OWNER-OCCUPIED HOUSING REHABILITATION PROGRAM Pre-Inspection Record Applicant: Property Address: Phone Number: Date of inspection: Residence Type: Single Family Residential Year Built: Home Sq. Ft/size: Repairs Requested: Repairs: 7/16/18 15.c Packet Pg. 527 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient QUESTION Is there evidence of any of the following? OBSERVATION SUBJECT PROPERTY ADJOINING PROPERTIES Is the property or any adjoining property currently used, or has evidence of prior use, as a gasoline station, motor vehicle repair facility, printing facility, dry cleaners, photo developing laboratory, junkyard, or as a waste treatment, storage, disposal, processing or recycling facility? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Are there any damaged or discarded automobile(s), automotive or industrial batteries, pesticides, paints, or other chemicals in individual containers greater than 5 gal in volume or 50 gal in the aggregate, stored on or used at the property or adjoining properties? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Are there any industrial drums (typically 55 gal) or sacks of chemicals, herbicides or pesticides located on the property or adjoining properties? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Has fill dirt been brought onto the property or adjoining properties that originated from a suspicious site or that is of an unknown origin? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Are there any pits, ponds, or lagoons located on the property or adjoining properties in connection with waste treatment or waste disposal? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Is there any stained soil, distressed vegetation and/or discolored water on the property or adjoining properties? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Are there any storage tanks, aboveground or underground (other than residential), located on the property or adjoining properties? YES  NO  UNKNOWN  YES  NO  UNKNOWN  *Adjoining properties: Any real property or properties the border of which is contiguous or partially contiguous with that of the property, or that would be contiguous or partially contiguous with that of the property but for a street, road, or other public thoroughfare separating them. SITE-SPECIFIC FIELD CONTAMINATION CHECKLIST Completing the form requires a site visit by the preparer. The preparer should be sure to observe the property by walking through the property and the building(s) and other structures on the property to the extent possible and observing all adjoining* properties. PREPARER MUST COMPLETE CHECKLIST IN ITS ENTIRITY Date of Visit: Time: Weather Conditions: Program Name: Project Location/Address: Property Owner: Attach the following, as appropriate:  Photographs of site and surrounding areas  Maps (street, topographic, aerial, site map, etc.) DRAFT HUD-R7-5-4-12 7/16/18 15.c Packet Pg. 528 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient QUESTION Is there evidence of any of the following? SUBJECT PROPERTY ADJOINING PROPERTIES Are there any vent pipes, fill pipes, or underground tank access ways visible on the property or adjoining properties? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Are any flooring, drains, walls, ceilings, or grounds on the property or adjoining properties stained by substances (other than water) or emitting noxious or foul odors or odors of a chemical nature? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Is the property served by a private well or non-public water system? (If yes, a follow-up investigation is required to determine if contaminants have been identified in the well or system that exceed guidelines applicable to the water system, or if the well has been designated contaminated by any government environmental/health agency.) YES  NO  UNKNOWN  Has the owner or occupant of the property been informed of the existence of past or current hazardous substances or petroleum products or environmental violations with respect to the property or adjoining properties? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Do the property or adjoining properties discharge wastewater (not including sanitary waste or storm water) onto the property or adjoining properties and/or into a storm water system? YES  NO  UNKNOWN  YES  NO  UNKNOWN  Is there a transformer, capacitor, or any hydraulic equipment on the property or adjoining properties that are not marked as “non-PCB”? YES  NO  UNKNOWN  YES  NO  UNKNOWN  If answering “YES” or UNKNOWN” to any above items, describe the conditions: Use photographs and maps to mark and identify conditions. Attach more information as needed. Is further evaluation warranted? YES  NO  UNCERTAIN  Preparer of this form must complete the following required information. This inspection was completed by: Name: Title: Phone Number: Email: Agency: Address: Preparer represents that to the best of his/her knowledge the above statements and facts are true and correct and to the best of his/her actual knowledge no material facts have been suppressed, omitted or misstated. Signature: Date: DRAFT HUD-R7-5-4-12 7/16/18 15.c Packet Pg. 529 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient #ITEM Contractor 1 Contractor 2 Contractor 3 1 2 3 4 5 6 7 8 9 Total BID Amount $0.00 $0.00 $0.00 Permits Bid Subtotal $0.00 $0.00 $0.00 addition to bid $0.00 $0.00 $0.00 Lowest Bid Middle Bid Highest Bid TOTAL (Client Name & Property Address) San Bernardino CA 9#### City of San Bernardino OWNER OCCUPIED RESIDENTIAL REHABILITATION PROGRAM BID COMPARISON TOTAL w/ OPTION and ADDENDUM 7/16/18 15.cPacket Pg. 530Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Neighborhood Partnership Housing Services City of San Bernardino City of San Bernardino OWNER OCCUPIED RESIDENTIAL REHABILITATION PROGRAM BID ACCEPTANCE FORM Property Owner: ________________________________________________________ Property Address: _______________________________________________________ Home Phone: ______________________ Work Phone: _________________________ CONTRACTOR’S NAME: Address: City/State/Zip: License Number: Phone Number: NOTE: It is the responsibility of the Contractor to obtain the necessary permits from the pertaining City. I/We the Owner(s), of the above named property, have accepted the attached bid proposal to rehabilitate our property. Owner: Date 7/11/2018 7/16/18 15.c Packet Pg. 531 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Neighborhood Partnership Housing Services City of San Bernardino City of San Bernardino OWNER OCCUPIED RESIDENTIAL REHABILITATION PROGRAM GUARANTY FORM The undersigned guarantees the completion of sa id residential rehabilitation for: ____________________________(Address)_______________________________ ___ In the event your bid is selected by the program applicant and NPHS you, the Contractor, guarantee the following: Should any of the materials or equipment prove defective or should the work as a whole prove defective, due to faulty workmanship, material furnished, or methods of installation, or should the work or any part thereof fail to operate properly as originally intended and in accordance with the Project Cost Estimate/Bid and/or manufactures specifications, due to any of the above causes, all within twelve (12) months after the date on th e Acceptance and Approval of Completed Work form, the undersigned agrees to reimburse the Owner, upon demand, for its expenses incurred in restoring said work to the condition contemplated in the Project Cost Estimate/Bid, including the cost of any such equipment or material replaced and the cost of removing, and replacing of any other work necessary to make such replacement or repairs, or, upon demand by the Owner, to replace any such materials and to repair said work completely without cost to the Owner so that said work will function successfully as originally contemplated. The Owner shall have the unqualified option to make any needed replacements or repairs itself or to have such replacements or repairs done by the undersigned. The undersigned agrees that the repairs shall be made and such materials as are necessary shall be furnished and installed within the time limit designated by the Owner. If the undersigned fails or refuses to comply with their obligations under this guaranty, the Owner shall be entitled to all costs and expenses, including attorney's fees, reasonably incurred by reason of said failure or refusal. Company Name: ______________________________________________________ Signature: ______________________ Title: _________________ Date: _________________________ 7/16/18 15.c Packet Pg. 532 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Neighborhood Partnership Housing Services City of San Bernardino NOTE: The contractor executes the Guaranty on this page at the time submitting the Project Cost Estimate/Bid form. 7/16/18 15.c Packet Pg. 533 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 1 AGREEMENT FOR HOME IMPROVEMENT THIS AGREEMENT, hereinafter called the AGREEMENT, is made this ____ day of _________, 2018, by and between , hereinafter called the CONTRACTOR, and , hereinafter called the OWNER. WITNESSETH, that the CONTRACTOR and OWNER for the consideration stated herein mutually agree as follows: ARTICLE 1: Statement of Work. The CONTRACTOR shall furnish all supervision, technical personnel, labor, materials, machinery, tools, equipment, fixtures and services including transportation services, and perform and complete all work required for rehabilitation of the property described below in an efficient manner, as follows: Residential property located at: , San Bernardino, Ca 9240_, hereinafter called the PROPERTY, all in strict accordance with documents for home improvement, as prepared by City of San Bernardino, hereinafter called CITY. The OWNER will not request nor will the CONTRACTOR provide any additional work other than that which is listed in the City-approved scope of work or change order. ARTICLE 2: Contract Price; Retention. The OWNER will pay the CONTRACTOR for performance of this contract, in current funds, the contract price of 00/00 ($00,000.00). To ensure the CONTRACTOR’s faithful performance of this contract, ten percent (10%) of each progress payment will be retained by the OWNER and separately accounted for. Upon CONTRACTOR’s completion of all of the work and the recordation of a notice of completion by the OWNER, the retained amount shall be paid to the CONTRACTOR, less an amount reasonably necessary to compensate the OWNER for any defect in the work or other unsatisfactory performance of the work. ARTICLE 3: Agreement. In addition to the provisions hereof, this AGREEMENT includes all terms and provisions of the following documents, all of which are incorporated by reference: a. General Conditions attached hereto b. Addenda to this AGREEMENT, if any c. CONTRACTOR’s bid for rehabilitation of structure d. Architectural plans, if any e. Scope of work f. Work schedule g. List of subcontractors, if any h. Notice to Proceed This AGREEMENT, together with the other documents enumerated in this ARTICLE 3, which said other documents are as fully a part of this AGREEMENT as if hereto attached or herein repeated, forms the contract between the parties hereto. ARTICLE 4: Administration. This AGREEMENT shall be administered by Neighborhood Partnership Housing Services, a California corporation, hereinafter called NPHS. Administration of this AGREEMENT by NPHS shall include, without limitation: a. Approving, and obtaining CITY approval of, all improvements to be performed 15.c Packet Pg. 534 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 2 pursuant to this AGREEMENT, in advance of construction. This includes all change orders. b. Ensuring compliance with all laws, including without limitation the requirements of the Community Development Block Grant program, hereinafter called CDBG, as administered by the United States Department of Housing and Urban Development, hereinafter called HUD. c. Inspecting the PROPERTY during rehabilitation to ensure compliance with this AGREEMENT. d. Reviewing invoices submitted by CONTRACTOR and its subcontractors, if any. CONTRACTOR shall verify to NPHS that subcontractor invoices are reasonable and the work has been completed properly ARTICLE 5: CONTRACTOR Cooperation. CONTRACTOR understands and agrees that the funding that will be used to pay CONTRACTOR for the work done pursuant to this AGREEMENT has been obtained CITY from HUD pursuant to the CDBG program and must be utilized in compliance with the requirements of that program. CONTRACTOR agrees to cooperate fully with CITY, NPHS, HUD, and all other governmental agencies in ensuring and verifying such compliance, including without limitation any audit. This provision shall survive the expiration or termination of this AGREEMENT. ARTICLE 6: Term. This AGREEMENT shall commence upon its execution by both parties and shall continue in effect until all work to be performed by CONTRACTOR under this AGREEMENT has been completed to the written satisfaction of OWNER, NPHS, and CITY. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed in one original and two copies on the date and year first above written. OWNER By By PHONE: ( )_____________ ADDRESS: ____________, San Bernardino, CA 9240_ CONTRACTOR By:______________________________ Title:___Contractor_______________ Phone: ( ) Lic.#: _ _____ Address: ________________________ 15.c Packet Pg. 535 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 1 GENERAL CONDITIONS (Capitalized terms have the meaning assigned to them in the foregoing AGREEMENT FOR HOME IMPROVEMENT between CONTRACTOR and OWNER, of which these General Conditions are a part.) Contractors are licensed and regulated by the Contractors State License Board, located at 9821 Business Park Drive, Sacramento, CA 95827; Mailing Address: P.O. Box 26000 Sacramento, CA 95826. Any questions regarding a contractor may be referred to the Board at the preceding addresses. 1. CONTRACTOR agrees to begin construction within three (3) days of the issuance of a Notice to Proceed by the CITY and to complete the work within ____ days after commencement. 2. CONTRACTOR shall provide and pay for all labor, materials, services, license fees, and all items necessary for the proper completion of the construction work. 3. CONTRACTOR shall, before being entitled to receive any payment or progress payments hereunder, furnish OWNER, NPHS, and CITY with labor and material invoices and lien releases, covering work done and materials furnished for construction in an amount not less than the total prior payments made. 4. CONTRACTOR is prohibited from using lead-based paint in any work done pursuant to the AGREEMENT. 5. Payments will be made on approval of work and in accordance with the CITY policy regarding payment. Currently, for projects under $10,000.00, one check will be issued after completion of the work (see below for requirements). For larger amounts, progress payments will be made in accordance with the schedule for progress payments. 6. After the final inspection and acceptance of all work under the contract by OWNER, NPHS, and CITY, including clean-up, the CONTRACTOR may submit the requisition for final payment for approval. 7. Prior to final payment and as a condition hereto, CONTRACTOR shall provide a Labor and Material Lien Release on a form accepted by the building industry from all workers, sub-contractors, and material suppliers. This release will set forth the undisputed balance due the CONTRACTOR under the contract and duly approved change orders; a listing of additional amounts of outstanding and unsettled items which the CONTRACTOR claims are just and due and owing by OWNER to CONTRACTOR; a certification that work under the contract has been performed in accordance with the term thereof, and that there are no unpaid claims for materials, supplies or equipment and no claims of laborers or mechanics for unpaid wages arising out of the performance of the contract. 8. CONTRACTOR shall, for the duration of the AGREEMENT, continuously monitor the contracted work to determine that the work write-up and/or architectural plans are consistent with all applicable laws, ordinances and codes. Where the CONTRACTOR discovers that the work write-up and/or plans fail to meet code 15.c Packet Pg. 536 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 2 compliance, the CONTRACTOR shall immediately report all such findings to NPHS and CITY. 9. In the event CITY or NPHS, through inspection, ascertains that the contracted work is incomplete, the CONTRACTOR shall amend the contract through a change order "Addendum", as referred to in Article 3 of the foregoing HOME IMPROVEMENT AGREEMENT. Said change order shall identify all code deficiencies and required corrections. No change orders are allowable unless specifically approved in writing by the OWNER, NPHS, and CITY. No claim for an adjustment of the contract price will be valid unless so ordered. 10. The CONTRACTOR shall give all notices required by law and comply with all applicable laws, ordinances, codes of the CITY and the requirements of the CDBG Program. The CONTRACTOR shall obtain all required permits and licenses prior to commencing work. 11. CONTRACTOR agrees to keep in full force and effect at CONTRACTOR'S own expense during the entire term of the AGREEMENT the following policies of insurance: a. CONTRACTOR and each of its subcontractors shall maintain comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for each vehicle leased or owned by CONTRACTOR or its subcontractors and used in performing work under the AGREEMENT. b. CONTRACTOR and each of its subcontractors shall maintain worker’s compensation coverage in accordance with California workers’ compensation laws for all workers under CONTRACTOR’s and/or its any of its subcontractors’ employment performing work under the AGREEMENT. c. CONTRACTOR shall maintain commercial liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least One Million Dollars ($1,000,000), including products and completed operations coverage. Said insurance shall be primary insurance with respect to any coverage maintained by CITY and the policy shall so provide. CONTRACTOR shall require and ensure that all general liability insurance policies covering work under the AGREEMENT, whether obtained by CONTRACTOR or CONTRACTOR’s contractors or subcontractors, include CITY and its officers, agents, and employees as additional insureds. If required by CITY from time to time, CONTRACTOR shall increase the limits of CONTRACTOR’s liability insurance to reasonable amounts customary for contractors performing work similar to the work to be performed under the AGREEMENT. d. CONTRACTOR shall maintain builders’ risk/property insurance during the course of construction, and upon completion of construction if requested by CITY, and property insurance covering the property to be rehabilitated, in form appropriate for the nature of such property, covering all risks of loss, excluding earthquake, for one hundred percent (100%) of the 15.c Packet Pg. 537 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 3 replacement value, with deductible, if any, acceptable to CITY, naming CITY as a loss payee. e. Flood insurance must be obtained if required by applicable federal regulations. Concurrent with the execution of the AGREEMENT, and prior to the issuance of a Notice to Proceed and the commencement of any work, CONTRACTOR shall deliver to CITY copies of policies or certificates evidencing the existence of the insurance coverage required herein, which coverage shall remain in full force and effect continuously throughout the term of the AGREEMENT. Each policy of insurance that CONTRACTOR purchases in satisfaction of the above insurance requirements, except workers compensation, shall be endorsed naming CITY and its officers, agents, and employees as additional insureds, and shall provide that, except with respect to the coverage limits, insurance applies to each named and additional insured as though a separate policy were issued to each. Each policy shall provide for a waiver of subrogation as against CITY and its officers, agents, and employees, and shall provide that the policy may not be cancelled, terminated or modified, except upon thirty (30) days’ prior written notice to CITY. CONTRACTOR shall further comply with all applicable state laws and regulations as they relate to labor requirements, minimum wage requirements, safety orders, and such other federal and state laws and regulations as may govern employment, safety, wage and benefit standards, including without limitation all nondiscrimination provisions. 12. NPHS and CITY shall have the right to examine and inspect rehabilitation work included in this contract. Any orders or instructions to the CONTRACTOR will be given by OWNER or NPHS, upon prior approval by CITY. CITY and NPHS shall be permitted to examine and inspect all subcontracts, materials, equipment, payrolls and conditions of employment pertaining to the work, including all relevant dates and records. 13. CONTRACTOR agrees that work premises shall be kept clean each day and orderly during the course of the work and, upon completion of work, to remove all debris and surplus materials from the property and to leave said property in a neat and broom-clean condition. 14. CONTRACTOR guarantees that all materials and equipment furnished by CONTRACTOR shall be new and of good quality and manufacturers' and suppliers' written guarantees and warranties covering said materials and equipment furnished under the contract shall be provided to the OWNER. 15. Neither the final payment nor partial or entire use of the premises by OWNER shall constitute an acceptance of work not done in accordance with the AGREEMENT or relieve the CONTRACTOR of liability in respect to any express warranties or responsibility for faulty materials or workmanship. The CONTRACTOR shall promptly remedy any defects in the work, and pay for any damage to other work resulting therefrom, which may appear WITHIN A PERIOD OF ONE YEAR with the exception of roofs where a minimum five year warranty must be provided from the date of final acceptance of the work unless a longer period is specified. The OWNER will give notice of observed defects with reasonable promptness. 16. CONTRACTOR or subcontractors contracting for any part of the work under the 15.c Packet Pg. 538 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 4 AGREEMENT shall not work or permit work to be done on Sunday or CITY holidays without prior approval of the CITY. (Holidays include: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas.) 17. OWNER may continue to occupy the premises during rehabilitation work, but will cooperate with the CONTRACTOR in a reasonable manner, keeping interference to a minimum and abandoning limited areas as may be essential to conduct the work. 18. Existing utility services will be available to CONTRACTOR without charge, including: electricity, gas, and water. 19. Time is of the essence and work shall be accomplished as quickly and expeditiously as possible. In the event completion of the work is delayed beyond the due date set forth in this contract for any reason other than willful failure or refusal by the OWNER to cooperate or the causes specified in Section 20, CONTRACTOR shall pay to OWNER the sum of ONE HUNDRED DOLLARS ($100.00) per day as fixed, agreed and liquidated damages for each calendar day of delay from the above date stipulated for completion, or as modified in accordance with any approved change orders, until such work is satisfactorily completed and accepted. Such liquidated damages may be deducted from the final payment. Where the project cost is paid for by both the OWNER and CITY, such liquidated damages shall be shared on a prorata basis. 20. CONTRACTOR shall not be charged with liquidated damages pursuant to Section 19 for any delay in the completion of work due to: a. Any act of government, including controls or restrictions on or requisitioning of materials, equipment, tools or labor by reason of war, national defense, or any other national emergency. b. Any act of OWNER. c. Causes NOT reasonably foreseeable by the parties to the AGREEMENT at the time of its execution which are beyond the control of, and occur without fault or negligence by, the CONTRACTOR, including but not restricted to acts of another contractor in the performance of some other contract with the OWNER, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes and weather conditions. d. Any delay of any authorized subcontractor occasioned by any of the causes specified in paragraphs (a), (b), and (c) above. Provided however, that CONTRACTOR must promptly (within ten days) notify the OWNER and NPHS, in writing, of the cause of the delay. If the facts show the delay to be properly excusable under the terms of this contract, the OWNER shall extend the contract time, subject to the CITY'S approval, by a period commensurate with the period of excusable delay. 21. In the event CONTRACTOR fails or refuses to complete the work as set forth in 15.c Packet Pg. 539 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 5 the schedule incorporated into the AGREEMENT, or fails or refuses to use due diligence in performing the required alterations and improvements, and in the further event that such failure, refusal or default continues for 48 hours after delivery to CONTRACTOR of a written notice to cure such default, then the OWNER may terminate the AGREEMENT by written notice to CONTRACTOR, and upon delivery of such notice, CONTRACTOR shall immediately surrender possession of the premises and remove all equipment and materials therefrom. CONTRACTOR shall, upon such termination, deliver materials and labor lien releases, executed by all persons and firms supplying labor and/or materials to the premises, and OWNER shall be obligated to pay CONTRACTOR only the dollar amounts specified for the portion of the work completed by CONTRACTOR and accepted by OWNER and CITY to the date of termination. In computing the amount due, CONTRACTOR shall not be entitled to any allowance for overhead, profit, insurance or other items listed in the total contract price on the bid form. Payment shall be made to CONTRACTOR only after the total job has been completed and under the terms and conditions as set forth in the AGREEMENT. 22. All claims and disputes relating to this contract shall be settled by arbitration in accordance with the rules of the American Arbitration Association for the construction industry. Should either party bring suit in court to enforce the terms hereof, any judgment awarded shall include court costs and reasonable attorney's fees to the prevailing party. 23. The parties hereto agree to hold harmless and defend, with counsel reasonably acceptable to CITY, CITY and each of its officers, employees and agents from all claims, damages, costs or expenses that may arise because of property damage and/or personal injury resulting from or out of the course of performing the work hereunder which may be caused by the willful or negligent act or omission by CONTRACTOR or any of its employees, agents, or subcontractors. 24. CONTRACTOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin or disabilities. CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. CONTRACTOR will comply with all provisions of Executive Order 11246 of September 24, 1965, and all implementing regulations of the Department of Labor. 25. The AGREEMENT constitutes the sole and only agreement of the parties hereto relating to the project and correctly sets forth the rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in the AGREEMENT are of no force and effect. The AGREEMENT may be amended only by a written addendum signed by both parties with prior approval by the CITY. 26. No member of the governing body of CITY, and no other public official of CITY 15.c Packet Pg. 540 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 6 who exercises any functions or responsibilities in connection with the administration of the project to which the AGREEMENT pertains, shall have any interest, direct or indirect, in the AGREEMENT. Owner: Date: Owner: Date: Contractor: Date: 15.c Packet Pg. 541 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 1 NOTICE TO PROCEED DATE: TO: Contractor Address City, CA Zip FROM: City of San Bernardino 290 N. D Street San Bernardino, CA 92401 You are hereby authorized to proceed with the work to be undertaken per bid specifications at , San Bernardino, CA 9240_ as of _____________________________, 2018. You must begin work within three (3) days of issuance of this NOTICE TO PROCEED. You may conduct work between the hours of 7:00 a.m. to 7:00 p.m., Monday through Saturday, or as mutually agreed by you and the property owner, with concurrence of the CITY. You may not modify, revise, or change the scope of work provided under the bid specifications, except as authorized by the property owner and CITY, in writing after your submittal of a CHANGE ORDER, which includes a description of the change in work, the reason for the change and an itemized list of costs. Work must be completed within days of the date of this NOTICE TO PROCEED, or as otherwise agreed upon by the owner and CITY. ___________________________________ ________________________ Gretel Noble, Housing Manager Date 15.c Packet Pg. 542 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient CITY OF SAN BERNARDINO RESIDENTIAL REHABILITATION LOAN AGREEMENT THIS RESIDENTIAL REHABILITATION LOAN AGREEMENT (this “Agreement”) is made this___ day of_________, 2018 by and between the City of San Bernardino, a charter city organized under the laws of the State of California, with an address of 290 North D Street, San Bernardino, CA (“City”) and_____________________________, an individual (“Borrower”). RECITALS WHEREAS, Borrower owns and lives in a single-family residence located at ______________________________________ within the City (the “Property”); and WHEREAS, City receives funding under the United States Department of Housing and Urban Development (“HUD”) Community Development Block Grant (“CDBG”) Program, which is eligible to be used for the improvement and rehabilitation of residential property within the City; and WHEREAS, City has adopted a Residential Rehabilitation Program in order to provide loans of said CDBG funds to certain owners of eligible residential property to construct improvements to and rehabilitate their properties; and, WHEREAS, Borrower proposes to make improvements to and rehabilitate the Property (the “Project”), and such improvements and rehabilitation will, in furtherance of the City’s objectives for the Residential Rehabilitation Program, improve the appearance of the City, assist in the elimination of physical and economic blight in the City, and stimulate private investment; and, WHEREAS, City desires to provide CDBG funding to Borrower for the Project; and WHEREAS, in furtherance of the foregoing, City and Borrower desire to enter into this Agreement to set forth the terms and conditions of the funding and construction of the Project. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, CITY AND BORROWER HEREBY AGREE AS FOLLOWS: Section 1. Recitals. The Recitals of this Agreement are true and correct and are incorporated herein by this reference. The information and facts set forth in the Recitals are material to this Agreement. Section 2. City Loan. City shall provide Borrower with the sum of $___________ in CDBG funds as a loan (the “Loan”) for certain construction work and materials for the 15.c Packet Pg. 543 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 2 furtherance of the Project by Borrower, subject to the conditions and restrictions set forth in this Agreement. The Loan shall not be increased under any circumstances, notwithstanding any increased costs for materials, supplies, or labor costs, or cost overruns of any nature with respect to the implementation of the Project which may exceed the anticipated costs of the Project. Any increased costs of the Project in excess of the Loan amount shall be the responsibility of, and paid for, by Borrower from independent sources of funds and not from any additional funding requests submitted by Borrower to the City. Section 3. Use and Disbursement of Loan Funds; Selection and Performance of General Contractor. (a) Borrower covenants that the Loan funds shall be expended solely to defray the costs of the Project. The Loan proceeds shall be disbursed by the City from time to time directly to a general contractor selected by Borrower to construct the Project, as specified below. No portion of the Loan proceeds shall be disbursed to Borrower. (b) The Loan and the Project shall be administered by Neighborhood Partnership Housing Services (“NPHS”), a California corporation. NPHS shall assist Borrower in procuring a licensed and insured general contractor (the “Contractor”) to construct the Project. The procurement of the Contractor and of the materials required for the Project shall be conducted in accordance with the public bidding requirements that would apply if the City procured the Contractor and the materials, in such a manner as to procure the lowest possible bidders at the lowest possible prices. The lowest responsive and responsible bidder shall be awarded the contract. NPHS shall also assist Borrower in ensuring that all permits required for the Project are obtained, periodically inspecting the progress of work, processing any change orders and invoices, issuing the notice to proceed, and completing a homeowner satisfaction survey. (c) City assumes no responsibility to Borrower or to any other person or entity for the selection or the performance of the Contractor. In selecting the Contractor, Borrower shall not discriminate on the grounds of race, color, national origin, religion, sex, age, or physical disability not reasonably related to the work to be performed. (d) Prior to the commencement of any work on the Project, Borrower and NPHS shall submit for City approval (i) a schedule of performance showing the dates for the performance of each portion of the Project; (ii) a budget showing the amount to be paid for each portion of the Project and the total amount to be paid for the entire Project; and (iii) all permits required for the initial portion of the Project. All work shall be performed in accordance with the schedule, budget, and permits unless otherwise authorized in writing by City. (e) Work on the Project shall proceed in the following order of priority: (i) Remediation of Health and Safety Code violations, if any (ii) Emergency repairs (iii) Americans with Disabilities Act improvements (i.e., handicapped accessibility) (iv) Energy efficiency / weatherization upgrades 15.c Packet Pg. 544 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 3 (v) General property improvements / repairs (f) Loan funds shall be disbursed by City to Contractor periodically as work on each portion of the Project is completed to the satisfaction of City, NPHS, and Borrower. Borrower and NPHS shall submit to City, for City approval, the following documents as a condition precedent to the disbursement of Loan funds: (i) A Notice to Proceed, which upon City approval shall be issued to the Contractor prior to the commencement of any work. (ii) Permits, as required for each portion of the Project, prior to the commencement of any work on that portion. (iii) Periodic inspection reports and photographs, to be submitted with each progress payment request for work on the Project. Inspection reports shall be prepared by NPHS after inspecting the work for completeness and accuracy. (iv) Invoices from Contractor, subcontractors if any, and material suppliers for each item of the work and materials for which Borrower is seeking payment by City. (v) A Notice of Completion, with evidence showing recording of the notice within the time required by law, upon the completion of the entire Project. If the Project is performed pursuant to more than one contract, a Notice of Completion, with such evidence of recording, shall be submitted upon the completion of each such contract. (vi) Upon the completion of the Project, evidence that warranties were forwarded to Borrower. (vii) Completed homeowner satisfaction survey. (g) Borrower shall be solely responsible for any Project costs for labor or materials not performed in compliance with the requirements of this Agreement. Borrower shall defend and hold City harmless from all costs and expenses with respect to all work performed and materials acquired not in compliance with this Agreement. (h) All proceeds of the Loan shall be used on or before one (1) year from and after the date of this Agreement. Failure or inability of Borrower to so use and apply such proceeds in furtherance of the Project by such date and in compliance with this Agreement shall relieve City of any further duty or obligation under this Agreement to provide for any further disbursements of Loan funds. Any unspent funds at the time the Notice of Completion or a Notice of Cessation is recorded for the Project shall be returned immediately by Borrower to City. 15.c Packet Pg. 545 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 4 Section 4. Duty to Obtain Permits; Role of City. Borrower agrees that Borrower and Contractor shall have the sole obligation and duty to obtain whatever approvals and permits may be necessary to be obtained from City prior to the commencement of the Project, and shall further be solely responsible for obtaining any and all necessary inspections and surveys related to the Project. Upon the request of Borrower, City shall provide the service of City staff to assist Borrower in determining the City approvals, if any, that may be required for the Project. Borrower shall have the duty and obligation to approve construction plans and designs for all aspects of the Project, and shall be responsible for ensuring that all work relating to the Project is performed in accordance with City approved plans and specifications. Section 5. Maintenance Obligations for Project Improvements; Indemnity and Insurance. (a) In consideration of the Loan, Borrower agrees to be solely responsible for the maintenance, care and replacement of all landscaping materials, trees, irrigation systems and other similar improvements and all aspects of the building improvements that constitute the Project. Such maintenance obligation shall extend until the parties to this Agreement provide otherwise by written agreement, and such obligation shall be enforceable by City against Borrower. City may obtain such remedies to enforce this maintenance obligation, including specific performance and damages, as may be awarded by a court in the event Borrower fails to fulfill any obligations required by this Section. Borrower agrees to defend, indemnify and hold harmless City from all claims arising from any matters related to the maintenance obligation of Borrower and the location, replacement, operation and maintenance of all landscaping materials and irrigation systems installed within the public right-of-way. (b) Borrower agrees to defend and protect City, its governing boards, commissions, agents, officers, employees, and authorized representatives, against all claims and liability for death, injury, loss and damage resulting from Borrower’s actions in connection with the Loan and the Project during the construction phase thereof, including, thereafter, the ongoing maintenance of the landscaping areas, and shall secure and maintain insurance, and shall require the maintenance of insurance by Contractor and any subcontractors, as described below. No disbursement of the Loan shall be paid to the Contractor until Borrower provides the required policies and/or certificates evidencing the insurance required by this Agreement to City and the same are approved by City. (c) Borrower shall maintain, at all times during the term of this Agreement and while Borrower retains the maintenance obligations for the landscaping, property insurance on the Property, including full replacement value coverage, insuring the Property against fire, flood, and any and all other damage or casualty, with City as a loss payee, and including general liability coverage. Borrower pay any deductibles and self-insured retentions under all policies. (d) During the construction of the Project, Borrower shall require that all contractors and subcontractors performing work on the Project maintain the following insurance coverage at all times during the performance of said work: 15.c Packet Pg. 546 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 5 (i) Comprehensive automobile liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence for each vehicle leased or owned and used in performing work under this Agreement. (ii) Workers compensation coverage in accordance with California workers compensation laws for all employees performing work under this Agreement. (iii) Builder’s risk insurance to be written on an All Risk Completed Value form, in an aggregate amount equal to 100% of the completed insurable value of the Project, including materials to be acquired and installed within the public right-of-way. (iv) Commercial liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least One Million Dollars ($1,000,000), including products and completed operations coverage. Said insurance shall be primary insurance with respect to any coverage maintained by City and the policy shall so provide. If required by City from time to time, the Contractor shall increase the limits of its liability insurance to reasonable amounts customary for contractors performing work similar to the work to be performed under this Agreement. (e) If any of the insurance coverage required under this Agreement is written on a claims-made basis, such insurance policy shall provide an extended reporting period continuing through the period of time that Borrower continues to have the obligation to maintain the improvements. (f) Each policy of insurance maintained in satisfaction of the above insurance requirements, except workers compensation, shall be endorsed naming City and its officers, agents, and employees as additional insureds, and shall provide that, except with respect to the coverage limits, insurance applies to each named and additional insured as though a separate policy were issued to each. Each policy shall provide for a waiver of subrogation as against City and its officers, agents, and employees, and shall provide that the policy may not be cancelled, terminated or modified, except upon thirty (30) days’ prior written notice to City. (g) Receipt of evidence of insurance that does not comply with the above requirements shall not constitute a waiver of the insurance requirements of this Grant Agreement. (h) Borrower, the Contractor, and its subcontractors shall immediately obtain replacement coverage for any insurance policy that is terminated, canceled, non-renewed, or policy limits of when are exhausted, or upon insolvency of the insurer that issued the policy. (i) All insurance to be obtained and maintained under this Agreement shall be issued by a company or companies listed in the current “Best’s Key Rating Guide, Property/Casualty” publication with a minimum Financial Strength Rating of at least A and a Financial Size Category designation of at least V, and shall be issued by a California admitted insurance company. 15.c Packet Pg. 547 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 6 (j) All insurance maintained in satisfaction of the requirements of this Agreement shall be primary to and not contributing to any other insurance maintained by the City. (k) Failure to maintain any insurance required by this Grant in effect at all times shall be an Event of Default by Borrower. City, at its sole option, may exercise any remedy available to it in connection with such an Event of Default. Additionally, City may purchase such required insurance coverage and shall be entitled to immediate payment from Borrower for any premiums and associated costs paid by City for such insurance. Any election by City not to purchase insurance pursuant to this provision shall not relieve Borrower of its obligation to maintain and require the maintenance of the insurance policies coverage required by this Agreement. Section 6. Term of Agreement; Disposition of Unused Funds. This Agreement shall remain in effect for ten years following its execution by both parties, unless terminated sooner as provided for herein. Upon termination of this Agreement, and upon the recording of a Notice of Completion or Notice of Cessation for the Project, Borrower shall immediately return any unused Loan funds to City. Section 7. Occupancy Requirement; Loan Forgiveness/Acceleration. (a) The Loan is evidenced by a promissory note (the “Note”) secured by a deed of trust (the “Deed of Trust”) on the Property. The provisions of the Note and Deed of Trust are incorporated herein by reference. (b) As specified in the Note and the Deed of Trust, Borrower agrees to occupy the Property as Borrower’s principal residence for the term of this Agreement. In consideration, City agrees that as long as Borrower complies with this occupancy requirement, on an ongoing basis and is otherwise not in breach of this Agreement, twenty percent of the balance due on the Loan shall be forgiven each year starting with the sixth anniversary of the date of this Agreement and ending on the tenth anniversary, at which time the entire balance shall be forgiven. (c) If Borrower at any time before the tenth anniversary of the date of this Agreement transfers all or any part of Borrower’s interest in the Property, except an easement, the entire Loan balance then outstanding shall, at City’s option, become immediately due and payable by Borrower to City. Section 8. Time of Essence. Time is strictly of the essence with respect to each and every term, condition, obligation, and provision hereof and failure to timely perform any of the terms, conditions, obligations, or provisions hereof by either party shall constitute a material breach of and a default under this Agreement by the party so failing to perform. Section 9. No Waiver. Failure to exercise any right City may have or be entitled to, in the event of default by Borrower hereunder, shall not constitute a waiver of such right or any other right, in the event of a subsequent default by Borrower. Section 10. Events of Default. 15.c Packet Pg. 548 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 7 (a) Default. Failure or unexcused delay by either party to perform any material term or provision of this Agreement shall constitute a default hereunder; provided, however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct, or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and diligently pursues such cure, correction, or remedy to completion, such party shall not be deemed to be in default hereunder. (b) Notice of Default. The party claiming that a default has occurred shall give written notice of default to the party claimed to be in default, specifying the alleged default. If applicant/contracting party consists of two or more natural persons, that notice to one person constitutes notice to all persons identified in this agreement. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, that the party claiming default shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. (c) Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. (d) Breach. In the event that a default of either party remains uncured for more than thirty (30) calendar days following written notice, as provided above, a “breach” shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this Agreement by serving written notice of such termination on the other party. Obligations of Borrower are joint and several as to each __________ and ___________ (e.g. husband and wife, etc.). (e) Additional Rights and Remedies of City. Upon a default by Borrower: (i) City shall be released from any further obligations under this Agreement; provided, however, that the City shall not be released from its obligation to pay any amounts previously requested by Borrower for work performed or materials supplied under this Agreement, to which such default does not apply; and (ii) City may seek appropriate legal or equitable relief. (f) Additional Rights and Remedies of Borrower. Upon a default by the City, Borrower may institute any proceeding at law or in equity to enforce the obligations of the City under this Agreement. (g) Limitation of Remedies. Neither party shall be liable to the other for consequential or incidental damages. Section 11. Further Assurances. Borrower shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as City 15.c Packet Pg. 549 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 8 shall, from time-to-time, deem necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan. Section 12. Governing Law; Compliance. (a) This Agreement shall be governed by the laws of the State of California and, to the extent applicable, by the laws and regulations relating to the CDBG Program, including without limitation those contained in Subpart K of Part 570 of Title 24 of the Code of Federal Regulations. Borrower agrees to comply with all of said laws and regulations in the use of the Loan funds. (b) Borrower further agrees to comply with all ordinances, rules, and regulations of City for the use and disbursement of the Loan. Nothing in this Agreement is intended to be, nor shall it be deemed to be, a waiver of any City ordinance, rule, or regulation or other applicable provisions of state law. (c) Any legal action brought under this Agreement must be instituted in the Superior Court for the County of San Bernardino, San Bernardino District, State of California, or in the Federal District Court in the Central District of California. (d) Borrower shall retain, for at least five years after the expiration or termination of this Agreement, all records in the possession of Borrower relating to the Project or the use of the Loan funds. (e) Borrower agrees to cooperate fully with City as may be required to respond to an audit or other investigative activity initiated by any governmental agency including, without limitation, HUD. Section 13. Amendment. No modification, rescission, waiver, release, or amendment of any provision of this Agreement shall be made except by a written agreement executed by Borrower and City and duly approved by the governing body of City or its designee. Section 14. No Assignment by Borrower. Borrower may not assign or transfer any portion of the Loan or this Agreement, without the prior express written consent of City, which may be given or withheld at the sole discretion of City. Section 15. Notices. Any notices, requests, or approvals to be given under this Agreement from one party to another may be personally delivered, delivered by nationally recognized overnight delivery service, or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested, to the following addresses: To Borrower: 15.c Packet Pg. 550 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 9 To City: City of San Bernardino Attention: Economic Development and Housing Department 290 North D Street San Bernardino, CA 92401 Communications delivered personally or by nationally recognized overnight delivery service shall be effective upon such delivery. Communications sent by United States Mail shall be effective on the third (3rd) business day following their deposit for mailing with the United States Postal Service. Either party may change its address for notice by giving written notice thereof to the other party. Section 16. Partial Invalidity. If any term or provision or portion of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, and the application of such term or provision or portion thereof to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall be enforced to the fullest extent permitted by law. Section 17. No Intent to Create Third Party Beneficiaries. The parties intend that the rights and obligations under this Agreement shall benefit and burden only the parties hereto, and do not intend to create any rights in, or right of action to or for the use or benefit of any third party, including any governmental agency, which is not one of the parties to this Agreement. Section 18. Entire Agreement. This Agreement is the final expression of, and contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto. This Agreement may not be modified, changed, supplemented, or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwise expressly permitted herein. Section 19. Construction. Headings at the beginning of each Section are solely for the convenience of the parties and are not a part of this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared the same. Unless otherwise indicated, all references to Sections are to this Agreement. Section 20. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute a single instrument. [SIGNATURE PAGE FOLLOWS] 15.c Packet Pg. 551 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 10 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates written next to the signatures of their duly authorized representatives, below. BORROWER Date:_______________________ By:_______________________________ Date:_______________________ By:_______________________________ CITY Date:_______________________ By:________________________________ ATTEST: By:________________________ APPROVED AS TO FORM AND LEGAL CONTENT: Gary D. Saenz, City Attorney By: ________________________ 15.c Packet Pg. 552 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 1 ] ] ] ] Recording requested by and ] When recorded return to: ] ] ] City of San Bernardino ] Economic Development & Housing Department ] 290 North D Street ] San Bernardino, CA 92401 ] Attn: Director of Economic Development and ] Housing ] ] ________________________________________________________________________________________ City of San Bernardino OWNER-OCCUPIED RESIDENTIAL REHABILITATION PROGRAM DEED OF TRUST NOTICE TO BORROWER THIS DEED OF TRUST CONTAINS PROVISIONS RESTRICTING ASSUMPTIONS Loan No. _______________________ This Deed of Trust is made on ______________________ by ______________________________, as trustor (the “Borrower”) and the City of San Bernardino, as trustee (the “Trustee”), whose business address is 290 North D Street, San Bernardino, CA 92401 in favor of the City of San Bernardino, as beneficiary (“Lender”) whose address is 290 North D Street, San Bernardino, CA 92401, or Lender’s assignee. 1. BORROWER, IN CONSIDERATION OF THE INDEBTEDNESS HEREIN RECITED AND THE TRUST HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to Trustee in trust, with power of sale and right of entry and possession, all of Borrower’s right, title and interest now held or hereafter acquired in and to the following: (a) all of that certain real property (the “Property”) located at ________________________________________, San Bernardino [zip code] in the County of San Bernardino, the State of California, which is more particularly described in Exhibit A (attached) which is incorporated herein by this reference; and (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property now or hereafter affixed to, placed upon or used in connection with the Property, together with all additions to, substitutions for, changes in or replacements of the whole or any part of said articles of property; all of which are hereby pledged and assigned, transferred, and set over onto Trustee, and for purposes of this Deed of Trust declared to be part of the realty; provided, however, that furniture and other personal property of Borrower now or hereafter situated on said real property are not intended to be included as part of the Property. 7/16/18 15.c Packet Pg. 553 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 2 2. FOR THE PURPOSE OF SECURING: 2.1. Repayment of the indebtedness evidenced by that certain Promissory Note of the Borrower dated ______________________________, and designated as City of San Bernardino Owner Occupied Residential Rehabilitation Program Loan No. __________________________ (the “Note”) of the Borrower in the principal amount of ________________________________________________ Dollars ($_________.__), and any and all amendments, modifications, extensions or renewals of the Note. The Note and this Deed of Trust are subject to the terms, conditions, and restrictions of the United States Department of Housing and Urban Development (“HUD”) Community Development Block Grant (“CDBG”) Program as set forth in the implementing guidelines and regulations adopted by HUD, including without limitation those set forth in Title 24 of the Code of Federal Regulations, all of which are hereby incorporated by reference. Concurrently herewith, Lender and Borrower have entered into a loan agreement (the “Loan Agreement”) setting forth the terms of the loan secured hereby. 2.2. Payment of such additional sums: (a) As may hereafter be borrowed from Lender by the then-record owner of the Property and evidenced by a promissory note or notes reciting that it or they are so secured and all modifications, extensions, or renewals of the Note; and (b) As may be incurred, paid, or advanced by Lender, or as may otherwise be due to Trustee or Lender, under any provision of this Deed of Trust and any modification, extension, or renewal of this Deed of Trust; and (c) As may otherwise be paid or advanced by Lender to protect the security or priority of this Deed of Trust. 2.3. Performance of each obligation, covenant, and agreement of Borrower contained in the Loan Agreement, this Deed of Trust, the Note, or any other document executed by Borrower in connection with the loan(s) secured by this Deed of Trust, and all amendments to these documents whether set forth in this Deed of Trust or incorporated in this Deed of Trust by reference. 3. BORROWER COVENANTS: Borrower hereby covenants to maintain and protect the security of this Deed of Trust, to secure the full and timely performance by Borrower of each and every obligation, covenant, and agreement of Borrower under the Loan Agreement, the Note, and this Deed of Trust, and as additional consideration for the obligation(s) evidenced by the Note, Borrower covenants as follows: 3.1. Title. That Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring Lender’s interest in the Property. 3.2. Payment. That Borrower shall promptly pay, when due, the then outstanding balance of the Note, and such other charges as are provided in the Note, and such other amounts as are provided under this Deed of Trust. 7/16/18 15.c Packet Pg. 554 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 3 3.3. Maintenance of the Property. (a) To keep the Property in a decent, safe, sanitary, tenantable condition and repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about the Property any condition causing the Property to become less valuable; (c) not to remove, demolish or structurally alter any buildings and improvements now or hereinafter located on the Property; (d) to repair, restore or rebuild promptly any buildings or improvements on the Property that may become damaged or be destroyed while subject to the lien of this Deed of Trust; (e) to comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; (f) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the Lender’s written consent; and (g) not to alter the use of all or any part of the Property without the prior written consent of the Lender. 3.4. Appear and Defend. Borrower shall appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the Lender or Trustee; and shall pay all costs and expenses incurred by Lender or Trustee, including cost of evidence of title and attorney’s fees in a reasonable sum, in any such action or proceeding in which the Lender or Trustee may appear, 3.5. Payment of Taxes and Utility Charges. Borrower shall pay: at least ten (10) days before delinquency, all taxes and assessments affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, fines and impositions attributable to the Property, leasehold payments or ground rents, if any, and any interest on the Property or any part thereof; and all costs, fees and expenses of this Deed of Trust. Borrower shall make such payments when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this section, and Borrower shall promptly furnish to Lender receipts evidencing all such payments made. 3.6. Insurance. To keep the Property insured with loss payable to the Lender, against loss or damage by fire, flood, and any and all other damages, hazards, casualties and contingencies. Insurance policies shall provide coverage in the amount of the replacement cost of the Property. Borrower shall deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender evidencing payment of the premiums. All such policies shall provide that the Lender shall be given thirty (30) days advance written notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it. Renewal policies and any replacement policies, together with premium receipts satisfactory to the Lender, shall be delivered to the Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses. All insurance proceeds for such losses must be utilized for the repair or restoration of the insured property. 3.7. Payments and Discharge of Liens. Borrower will pay, when due, all claims of every kind and nature which might or could become a lien on the Property or any part thereof; provided, however, that the following are excepted from this prohibition: (a) liens for taxes and assessments which are not delinquent but by law are given the status of a lien, and (b) such of the above claims as are, and only during the time they are, being contested by Borrower in good faith and by appropriate legal proceedings. Borrower shall post security for the payment of these contested claims as may be requested by the Lender. Borrower shall not default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is superior to this Deed of Trust. 4. IT IS MUTUALLY AGREED THAT: 7/16/18 15.c Packet Pg. 555 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 4 4.1. Future Advances. Upon request by Borrower, Lender, at Lender’s option, may make future advances to Borrower. All such future advances shall be added to and become a part of the indebtedness secured by this Deed of Trust when evidenced by promissory note(s) reciting that such note(s) are secured by this Deed of Trust. 4.2. Disbursements to Protect Lender’s Security. All sums disbursed by Lender to protect and preserve the Property, this Deed of Trust, or Lender’s security for the performance of Borrower’s obligations under the Note shall be and be deemed to be an indebtedness of Borrower to Lender secured by this Deed of Trust. 4.3. Protection of Lender’s Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender’s interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent, foreclosure of any mortgage, deed of trust, or other lien secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Lender, at Lender’s option, upon notice to Borrower, may make such appearance, disburse such sums and take such action as is necessary to protect Lender’s interest, including, but not limited to, disbursement of reasonable attorney’s fees and entry upon the Property to make repairs. Any amounts disbursed by Lender pursuant to this Section 4.3, with interest thereon, shall become additional indebtedness of Borrower to Lender secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law. Nothing contained in this Section 4.3 shall require Lender to incur any expense or take any action hereunder. 4.4. Inspection. Lender or its agent may make or cause to be made reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to any such inspection specifying reasonable cause for the inspection. 4.5. Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, or (c) any other injury or damage to all or any part of the Property, are hereby assigned to and shall be paid to the Lender. The Lender is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Lender shall determine at its option. The Lender shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Lender may be released to Borrower upon such conditions as the Lender may impose for its disposition. Application of all or any part of the amounts collected and received by the Lender or the release thereof shall not cure or waive any default under this Deed of Trust. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within thirty (30) days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender’s option, either to restoration or repair of the Property or to the sum secured by this Deed of Trust. 7/16/18 15.c Packet Pg. 556 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 5 4.6. Prohibition on Transfers of Interest. If all or any part of the Property or an interest therein is sold or transferred by Borrower without Lender’s prior written consent, Lender may, at Lender’s option, declare all the sums secured by this Deed of Trust to be immediately due and payable. If Lender exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 hereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof. 4.7. Sale or Forbearance. No sale of the Property, forbearances on the part of Lender or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Borrower either in whole or in part. 4.8. Lender’s Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: (a) Lender may, at its sole discretion, (I) release any person now or hereafter liable for payment of any or all such indebtedness. (II) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (III) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant to the written request of Lender, may reconvey all or any part of the Property, consent to the making of any map or plot thereof, join in granting any assessment thereon, or join in any such agreement of extension or subordination. 4.9. Reconveyance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. 4.10. Requirement of Owner-occupancy and Permitted Transfers. Borrower shall occupy the Property as Borrower’s principal place of residence during the term of the Note, except as may otherwise be expressly agreed upon by Lender in writing. 5. EVENTS OF DEFAULT 5.1. Events of Default. Any one or more of the following events shall constitute a default under this Deed of Trust (a) failure of the Borrower to pay the indebtedness secured hereby or any installment thereof when and as the same becomes due and payable, whether at maturity or by acceleration or otherwise; or (b) failure of Borrower to observe or to perform any covenant condition or agreement to be observed or performed by Borrower pursuant to the Note or this Deed of Trust, including but not limited to the provision requiring occupancy of the Property by Borrower; or (c) the occurrence of any event which, under the terms of the Note, shall entitle the Lender to exercise the rights or remedies thereunder; or (d) the occurrence of any event which, under the terms of any senior note or deed of trust, shall entitle the Lender to exercise the rights or remedies thereunder. 7/16/18 15.c Packet Pg. 557 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 6 5.2. Acceleration and Sale. (a) Acceleration. Upon Borrower’s breach of any covenant or agreement of Borrower in this Deed of Trust, including the covenants to pay when due any sums secured by this Deed of Trust, or upon Borrower’s failure to make any payment or to perform any of its obligations, covenants and agreements pursuant to the Note, Lender may at Lender’s option mail notice to Borrower as provided in Section 6.9 hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender at Lender’s option may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, except that Lender and Borrower shall each bear their own attorney fees. (b) Borrower’s Right to Reinstate. Notwithstanding Lender’s acceleration of the sums secured by this Deed of Trust, Borrower will have the right to have any proceedings begun by Lender to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Borrower pays all reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, except attorney fees; and (3) Borrower takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender’s interest in the Property and Borrower’s obligation to pay the sums secured by this Deed of Trust will continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. (c) Sale. After delivery to Trustee of a Notice of Default and Demand for Sale, and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Borrower, Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Borrower, Trustee or the Lender, may purchase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee and of this Deed of Trust, Trustee shall apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced by the Note or otherwise, or representing advances made or costs or expenses paid or incurred by the Lender under this Deed of Trust, or the secured obligations or any other instrument evidencing or securing any indebtedness hereby secured, and to the payment of all other sums then secured thereby, in such order as the Lender shall direct; and the remainder, if any, shall be paid to the person or persons legally entitled thereto. 7/16/18 15.c Packet Pg. 558 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 7 (d) Assignment of Rents; Appointment of Receiver; Lender in Possession. Upon acceleration under paragraph (a) of Section 5.2 hereof or abandonment of the Property, Lender (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property (if any) including those past due. All rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Property and collection of rents including, but not limited to, receiver’s fees, premiums on receiver’s bonds and reasonable attorney’s fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and paragraph (a) of Section 5.2 shall operate subject to the rights of prior lien holders. 5.3. Exercise of Remedies; Delay. No exercise of any right or remedy by the Lender or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by the Lender or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder. 5.4. Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefor, by filing for record in the office where this Deed of Trust is recorded a substitution of trustee, and said power of substitution of trustee or trustees may be exercised as often as and whenever the Lender deems advisable. The exercise of said power of substitution of trustee, no matter how often, shall not be deemed an exhaustion thereof, and upon recording of such substitution of trustee, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the predecessor in the trust hereunder, with like effect as if originally named as trustee or as one of the trustees. 5.5. Remedies Cumulative. No remedy herein contained or conferred upon the Lender or Trustee is intended to be exclusive of any other remedy or remedies afforded by law or by the terms hereof to the Lender or Trustee. Each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. 6. MISCELLANEOUS PROVISIONS 6.1. Successors, Assigns, Gender, Number. The covenants and agreements contained in this Deed of Trust shall bind, and the benefit and advantages under it shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders. 6.2. Headings. The headings contained in this Deed of Trust are inserted only for convenience of reference and in no way define, limit, or describe the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof. 6.3. Actions on Behalf of the Lender. Except as otherwise specifically provided herein, whenever any approval, notice, direction, consent, request or other action by the Lender is required or permitted under this Deed of Trust, such action shall be in writing. 6.4. Terms. The word “Lender” means the present Lender, or any future owner or holder, including pledgee, of the indebtedness secured hereby. 7/16/18 15.c Packet Pg. 559 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 8 6.5. Obligations of Borrower. If more than one person has executed this Deed of Trust as “Borrower,” the obligations of all such persons hereunder shall be joint and several. 6.6. Incorporation by Reference. The provisions of the Loan Agreement and the Note are incorporated by reference herein as though set out verbatim. 6.7. Severability. If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. 6.8. Indemnification. Borrower shall indemnify and hold the Lender, its officers and agents harmless against any and all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of anything done or omitted pursuant to or in connection with this Deed of Trust. Borrower shall not assert any claim against the Lender, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower’s expense, defend, indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, damages (general, punitive or otherwise), causes of action (whether legal or equitable in nature) asserted by any person, firm, corporation or other entity arising out of this Deed of Trust and Borrower shall pay the Lender upon demand all claims, judgments, damages, losses or expenses (including reasonable legal expense) incurred by the Lender as a result of any legal action arising out of this Deed of Trust. 6.9. Notice. Except for any notice required under applicable law to be given in another manner (a) any notice to Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property address or any other address Borrower designates by notice to Lender as provided herein; and, (b) any notice to Lender shall be given by certified mail, return receipt requested, to Lender’s mailing address stated above herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Borrower or Lender when received after mailing in the manner designated herein. 6.10. Beneficiary Statement. Lender may collect a fee for furnishing the beneficiary statement in an amount not to exceed the amount provided for in Section 2943 of the Civil Code of California. 6.11. Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than as a single family residential dwelling. IN WITNESS WHEREOF, Borrower has executed this Deed of Trust on the day and year set forth above. By signing below, Borrower agrees to the terms and conditions as set forth above. MAILING ADDRESS FOR NOTICES: SIGNATURE OF BORROWER(s): ________________________ _ _ ________________________ (Street) (Borrower Name(s)) San Bernardino__CA___________________ (City) (State) (Zip) 7/16/18 15.c Packet Pg. 560 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 9 Acknowledgements 7/16/18 15.c Packet Pg. 561 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 10 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed under the foregoing Deed of Trust from [name of Trustor] to the City of San Bernardino (“City”), a municipal corporation, as to the following property is hereby accepted: Real property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: [legal description] APN: This acceptance is made by the City Manager of the City on behalf of the City pursuant to authority conferred by action of the Mayor and City Council by Resolution No. ___, and the City as grantee consents to recordation of this Certificate by its duly authorized officer. CITY OF SAN BERNARDINO Dated: ________________, 2018 By: City Manager ATTEST: City Clerk 7/16/18 15.c Packet Pg. 562 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 1 City of San Bernardino OWNER-OCCUPIED RESIDENTIAL REHABILITATION PROGRAM PROMISSORY NOTE NOTICE TO BORROWER THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING ASSUMPTIONS AND IS SECURED BY A SECOND DEED OF TRUST ON RESIDENTIAL PROPERTY Loan No. . $_____________ _________________________ [loan amount] [property address] FOR VALUE RECEIVED, the undersigned,__________________________ (the “Borrower”) hereby promises to pay to the order of the City of San Bernardino (“Lender”) at the following address 290 North D Street, San Bernardino, CA 92401 or at such other place as the holder may from time to time designate by written notice to Borrower, in lawful money of the United States, the principal sum of ____________________________________ dollars ($______.__) without interest. The obligation of the Borrower with respect to this Note is secured by that certain City of San Bernardino Owner-Occupied Residential Rehabilitation Program Deed of Trust – Loan No. _________________(the “Deed of Trust”), executed by the Borrower concurrently herewith. 1. Borrower’s Obligation. This Note evidences the obligation of the Borrower to the Lender for the repayment of funds received by the Lender under the United States Department of Housing and Urban Development (“HUD”) Community Development Block Grant (“CDBG”) Program, which funds will be loaned (the “CDBG Loan”) by Lender to Borrower to finance the rehabilitation of that certain real property (the “Property”) which has the address of _______________________________________, San Bernardino, California ________________, more fully described in Exhibit A to the Deed of Trust. Concurrently herewith, Borrower and Lender have entered into a loan agreement (the “Loan Agreement”) setting forth the terms of the CDBG Loan. 2. Borrower(s) Acknowledge(s) and Agrees: that the CDBG Loan is subject to the terms, conditions, and restrictions of the CDBG program as set forth in implementing guidelines and regulations adopted by HUD, including without limitation those set forth in Title 24 of the Code of Federal Regulations, all of which are hereby incorporated by reference. Borrower agrees to use the CDBG Loan funds exclusively for the rehabilitation of the Property and agrees that any other use of said funds will constitute a default under this Note. Borrower represents that Borrower owns the Property in fee simple and agrees to maintain ownership throughout the term of this Note except as otherwise provided herein. Borrower agrees throughout the term of this Note to maintain property insurance insuring the Property against fire, flood, and any and all other damage or casualty, with Lender as a loss payee. 7/16/18 15.c Packet Pg. 563 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 2 3. Repayment of Loan; Forgiveness. No periodic payments are required hereunder. Borrower agrees to pay the unpaid principal balance and any other amounts due under this Note upon the earlier of: (a) ten years from the date of this Note; or (b) sale, transfer, lease, or encumbrance, including without limitation refinancing, of all or any part of Borrower’s interest in the Property without Lender’s prior written consent; or (c) Borrower’s failure to occupy the Property as Borrower’s principal place of residence. As long as Borrower occupies the Property as Borrower’s principal place of residence, and complies in full with this Note, the Loan Agreement, and the Deed of Trust, twenty percent of the balance due on this Note shall be forgiven each year starting with the sixth anniversary of the date of this Note and ending on the tenth anniversary, at which time the entire balance shall be forgiven. 4. Permitted Transfers. The CDBG Loan is not assumable except with the express written consent of the Lender, in the Lender’s sole discretion. 5. Acceleration of Payment. The entire balance then outstanding of the CDBG Loan shall become immediately due and payable, at the option of the holder and without demand or notice, upon the occurrence of any of the following events: (a) In the event of a default under the terms of the Loan Agreement, this Note, or the Deed of Trust; (b) In the event that the Borrower shall cease to occupy the Property as Borrower’s principal place of residence; (c) In the event of any sale, transfer, lease, or encumbrance of the Property without Lender’s prior written consent in violation of Paragraphs 3(b) and 4 of this Promissory Note; or (d) In the event that the Borrower shall become a bankruptcy debtor, insolvent, or subject to a receivership, or shall make an assignment for the benefit of creditors. 6. Effect of Acceleration Clause. Failure of the holder to exercise the option to accelerate payment as provided in Paragraph 5 of this Note will not constitute waiver of the right to exercise this option in the event of subsequent cause for acceleration. Failure by Borrower to occupy the Property as Borrower’s principal place of residence shall be considered an ongoing event of default under this Note. 7/16/18 15.c Packet Pg. 564 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 3 7. Place and Manner of Payment. All amounts due and payable under this Note are payable at the principal office of the Lender set forth above, or at such other place or places as the Lender may designate to the Borrower in writing from time to time. 8. Application of Payments. All payments received on account of this Note shall be applied to the reduction of principal. 9. Default and Acceleration. All covenants, conditions and agreements contained in the Loan Agreement and the Deed of Trust are hereby made a part of this Note. The Borrower agrees that the unpaid balance of the then principal amount of this Note shall, at the option of the Lender or, if so provided in this Note and the Deed of Trust, automatically become immediately due and payable upon the failure of the Borrower to make any payment hereunder as and when due; upon the failure of the Borrower to perform or observe any other term or provision of this Note; or upon the occurrence of any event (whether termed default, event of default or similar term) which under the terms of the Loan Agreement or the Deed of Trust shall entitle the Lender to exercise rights or remedies thereunder. The material falsity of any representation made by the Borrower in this Note, the Loan Agreement, or the Deed of Trust shall constitute an event of default under this Note. 10. Notices. Except as may be otherwise specified herein, any approval, notice, direction, consent, request or other action by the Lender shall be in writing and must be communicated to the Borrower at the address of the Property, or at such other place or places as the Borrower shall designate to the Lender in writing, from time to time, for the receipt of communications from the Lender. Mailed notices shall be deemed delivered and received five (5) working days after deposit in the United States mail in accordance with this provision 12. Prepayment Policy: Borrower may prepay this Note at any time without penalty. 13. Governing Law. This Note shall be construed in accordance with and be governed by the laws of the State of California. 14. Severability. If any provision of this Note shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby. 15. No Waiver by the Lender. No waiver of any breach, default or failure of condition under the terms of this Note, the Loan Agreement, or the Deed of Trust shall thereby be implied from any failure of the Lender to take, or any delay by the Lender in taking, action with respect to such breach, default or failure or from any previous waiver of any similar or unrelated breach, default or failure; and a waiver of any term of this Note, the Loan Agreement, the Deed of Trust, or any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver. 16. Successors and Assigns. The promises and agreements herein contained shall bind and inure to the benefit of, as applicable, the respective heirs, executors, administrators, successors and assigns of the parties. 7/16/18 15.c Packet Pg. 565 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 4 Executed as of the date set forth above at ________________________, California City _______________________________ Borrower Mailing Address for Notices: _______________________________ _______________________________ San Bernardino, CA ________ 7/16/18 15.c Packet Pg. 566 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient CITY OF SAN BERNARDINO OWNER-OCCUPIED RESIDENTIAL REHABILITATION PROGRAM TRUTH IN LENDING DISCLOSURES ANNUAL PERCENTAGE RATE ________0_______% COST OF CREDIT AS YEARLY RATE FINANCE CHARGE $0.00 DOLLAR AMOUNT CREDIT WILL COST AMOUNT FINANCED $__________ AMOUNT OF CREDIT APPROVED TOTAL OF PAYMENTS $ 0.00 AMOUNT PAID AFTER MAKING ALL PAYMENTS AS SCHEDULED PAYMENT SCHEDULE NUMBER OF AMOUNT OF MONTHLY PAYMENTS DUE BEGINNING PAYMENTS PAYMENTS N/A N/A Date: N/A THERE WILL BE A LATE CHARGE OF $ N/A IF PAYMENT IS MORE THAN 10 DAYS LATE. NOTE: THERE IS ZERO PERCENT (0%) INTEREST PER ANNUM ON THIS LOAN. THE LOAN IS FULLY DEFERRED FOR 10 YEARS. FINANCE CHARGE, NUMBER OF PAYMENTS, AND FINAL PAYMENT SCHEDULE ARE ESTIMATES. I/WE AM/ARE GIVING THE CITY OF SAN BERNARDINO A SECURITY INTEREST IN MY/OUR PROPERTY LOCATED AT: SAN BERNARDINO CA Street Address City State Zip Code AMOUNT FINANCED $ 0.00 Amount Paid by Owner $ 0.00 Total Credited to Escrow $ 0.00 Account No. _____________ FEES PAID TO OTHERS ON MY BEHALF FROM MY ESCROW ACCOUNT: 1. To for Escrow Fee $ 2. To for Loan Package Processing $ 3. To for Tax Service $ 4. To for Recording Fees $ 5. To for Credit Report $ 6. To for Contingency on Loan $ 7. To for Origination Fee $ 8. To for Loan Document Fee $ 9. To for Collection Fee $ 10. To for Title Report $ 11. To for Rehabilitation Work $ 12. To for Down Payment Assistance $ 0.00 13. To For Closing $ 0.00 14. To for $ Total $ 0.00 I/WE HEREBY APPROVE THE ABOVE LOAN FEES AND LOAN TERMS. ________________________________ ______________________________ Applicant Signature Date ________________________________ ______________________________ Applicant Signature Date 7/16/18 15.c Packet Pg. 567 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Recording Requested By: CITY OF SAN BERNARDINO And When Recorded Mail to: City of San Bernardino Attention: Economic Development & Housing Department 290 North D Street, Third Floor San Bernardino, CA 92401 Request for Notice Under Section 2924b CIVIL CODE EXEMPT FROM RECORDING FEES UNDER GOVERNMENT CODE SECTION 27383 AND/OR 6103 In accordance with Civil Code section 2924b, request is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under the Deed of Trust recorded as Instrument No. _________________________on _____________, in book N/A, page(s) N/A, Official Records of San Bernardino County, California, and describing land therein as: That certain property located in the City of San Bernardino, County of San Bernardino, State of California, more particularly described as: See Exhibit “A” attached hereto and incorporated herein by this reference. APN: ____________________ Executed by [First & Last Name] as Trustor(s), in which the City of San Bernardino is named as Beneficiary, and the City of San Bernardino is named as Trustee. Mailed to: City of San Bernardino Attention: Economic Development & Housing Department 290 North D Street, Third Floor San Bernardino, CA 92401 NOTICE: A copy of any notice of default and any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded. Dated:______________ ________________________________________ Kathy Brann, Director City of San Bernardino Department of Economic Development and Housing 7/16/18 15.c Packet Pg. 568 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient ACKNOWLEDGMENT State of California County of San Bernardino On _________________________ before me, ________________________________________ (insert name and title of the officer) personally appeared ____________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ______________________________ 15.c Packet Pg. 569 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient EXHIBIT “A” LOT ___ OF TRACT ___ IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK ___ OF MAPS, PAGES ___TO ___ INCLUSIVE, RECORDS OF SAID COUNTY [AMENDED PER CERTIFICATION OF CORRECTION RECORDED AS INSTRUMENT NUMBER ______________, OFFICIAL RECORDS, AND BY CERTIFICATE OF CORRECTION RECORDED AS INSTRUMENT NUMBER ________________, OFFICIAL RECORDS] APN: ________________________ San Bernardino, CA 92____ 7/16/18 15.c Packet Pg. 570 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient NOTICE OF RIGHT TO CANCEL Owner-Occupied Residential Rehabilitation Loan #_____________________ [street address], San Bernardino, CA. 92405 Your Right to Cancel You are entering into a transaction that will result in a security interest in your home. You have a legal right under federal law to cancel this transaction, without cost, within three business days from whichever of the following events occurs last: a) the date of the transaction, which is ; or (Date) b) the date you received your Truth in Lending Disclosures; or c) the date you received this notice of your right to cancel. If you cancel the transaction, the security interest is also cancelled. Within 20 calendar days after we receive your notice , we must take the steps necessary to reflect the fact that the security interest in your home has been cancelled, and we must return to you any money or property you have given to us or to anyone else in connection with this transaction. You may keep any money or property we have given you until we have done the things mentioned above, but you must then offer to return the money or property. If it is impractical or unfair for you to return the property, you must offer its reasonable v alue. You may offer to return the property at your home or at the location of the property. Money must be returned to the address below. If we do not take possession of the money or property within 20 calendar days of your offer, you may keep it without further obligatio n. How to Cancel If you decide to cancel the transaction, you may do so by notifying us in writing, at City of San Bernardino 290 North D Street, San Bernardino, CA 92401 Attn: Director of Economic Development and Housing You may use any written statement that is signed and dated by you that states your intention to cancel, or you may use this notice by dating and signing below. Keep one copy of this notice because it contains important information about your rights. If you cancel by mail or telegram, you must send the notice no later than midnight of (Date) (or midnight of the third business day following the latest of the three events listed above). If you send or deliver your w ritten notice to cancel some other way, it must be delivered to the above address no later than that time. I WISH TO CANCEL (Consumer’s Signature) (Date) ACKNOWLEDGEMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of the Notice above. [name(s)] [date] Notice of Right to Cancel 7/16/18 15.c Packet Pg. 571 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient Neighborhood Partnership Housing Services City of San Bernardino City of San Bernardino OWNER OCCUPIED RESIDENTIAL REHABILITATION PROGRAM ACCEPTANCE AND APPROVAL OF COMPLETED WORK Site Address: Address San Bernardino, CA 9#### Owner: Name By signing in the space provided below, the Contractor, Homeowner, and Neighborhood Partnership Housing Services, Inc. verify that the work is complete, approved and accepted by all parties. Furthermore, all work has been completed according to the specifications in the approved Project Cost Estimate/Bid and are in compliance with Health and Safety Code, Building Code, other State or local codes, and HQS. City Representative’s signature authorizes payment from NPHS to the Contractor. ATTACH COPIES OF PERMITS AND INSPECTION RECORDS (if Applicable) Amount: $ Amount Permit #: PMT Number _______________________________________ ________________________ Contractor: Date _______________________________________ ________________________ Owner: Date _______________________________________ ________________________ Approved by NPHS Representative Date _______________________________________ ________________________ Approved by City Representative Date 7/16/18 15.c Packet Pg. 572 Attachment: EDH.CDBG Subrecipient Agt. with NPHS.ATTACHMENT 2.POLICIES AND PROCEDURES (5721 : Adopt CDBG Subrecipient 16.a Packet Pg. 573 Attachment: PW.40th Street Widening ROW.REPORT (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) On May 31, 2018, a total of six proposals were received from consultants. A selection panel consisting of three staff members reviewed the proposals and rated them using the criteria identified in the RFP. The firms submitting the three highest rated proposals were invited to appear to present their proposals and be interviewed. The three firms interviewed were: 1. Overland Pacific Cutler, Inc. 2. Epic Land Solutions 3. Paragon Partners, LTD After carefully considering and comparing all rating factors from the proposals and interviews, the selection panel concluded that Paragon Partners, LTD is the best qualified firm and recommended that they receive a contract for this work. Paragon Partners LTD has submitted a competitive fee proposal in the amount of $123,100, which includes all of the requirements of the RFP and includes up to three residential relocations. Additional residential relocations, if required, will be billed at a rate of $2,900 each. The Consultants fee does not include trial valuation reports, litigation guarantees, appraisals of excess property or court testimony in the event condemnation is necessary. If needed, those services will be provided and billed at an hourly rate. Among the early tasks to be completed by this Consultant will be appraisals of properties to be acquired. The appraisals will provide an estimate of the total cost and budget requirements for this project. Staff has been meeting with Southern California Edison Company to initiate the undergrounding of overhead utilities for this project. The undergrounding will be funded through Rule 20-A at a minimal cost to the City. It is anticipated that the undergrounding and ROW acquisition will require approximately one year to complete and the project can begin construction in late 2019. Fiscal Impact A total of $1,025,000 has been allocated in the FY 2018/19 budget in Account No. 264- 160-7160-5504 for ROW acquisition for this project. Twenty parcels have been identified as impacted by the widening and may require partial or full acquisition. The budget is proposed to be used as follows: 1. Appraisal and acquisition consultant support (This Agreement) $ 123,100 2. Engineering support during ROW acquisition $ 25,000 3. Estimated Cost of ROW Acquisition $ 876,900 $1,025,000 Until appraisals and negotiations are completed it will not be possible to accurately determine the cost of the acquisition; however, it is anticipated that most of the right-of- way will be acquired this fiscal year. It may be necessary to program additional funds in FY 2019/20 to cover any additional acquisition cost. 8/31/2018 9:32 AM 16.a Packet Pg. 574 Attachment: PW.40th Street Widening ROW.REPORT (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) The cost of this project is eligible for partial reimbursement under the Measure I Valley Arterial Sub-Program. Under the program, the San Bernardino County Transportation Authority (SBCTA) will reimburse 67.6% ($692,900) of the cost of the project leaving the City’s share as 32.4% ($332,100). Requests for reimbursement will be submitted to SBCTA ever three months and the reimbursed funds will be returned to Fund 264 (Regional Development Impact Fee). Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2018-248 approving a Consultant Services Agreement with Paragon Partners, LTD for Right-of-Way Acquisition Services for the widening of 40th Street between Johnson Street and Electric Avenue (SS04-014). Attachments Attachment 1 Location Map Attachment 2 Resolution; Consultant Services Agreement (Exhibit A) Ward: 4 Synopsis of Previous Council Actions 01/09/17 Resolution No. 2017-005 adopted approving Agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design services for the widening of 40th Street from Johnson Street to Electric Avenue (SS04-014). 07/19/17 Resolution No. 2017-131 adopted approving Amendment No 1 to an Agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design services for the widening of 40th Street from Johnson Street to Electric Avenue (SS04-014). 10/18/17 Resolution No. 2017-202 adopted approving Amendment No 2 to an Agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design services for the widening of 40th Street from Johnson Street to Electric Avenue (SS04-014). 03/21/18 Resolution No. 2018-75 approved adopting a Mitigated Negative Declaration (MND), adopting a Mitigation Monitoring and Reporting Program (MMRP), and authorizing the Director of Community Development or designee to file a Notice of Determination (NOD) with the Clerk of the Board of Supervisors of San Bernardino County for the widening of 40th Street between Johnson Street and Electric Avenue (SS04-014). 8/31/2018 9:32 AM 16.a Packet Pg. 575 Attachment: PW.40th Street Widening ROW.REPORT (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) PROJECT LOCATION MAP FORTIETH STREET WIDENING FROM JOHNSON STREET TO ELECTRIC AVENUE (SS04-0114) 16.b Packet Pg. 576 Attachment: PW.40th Street Widening ROW.ATTACH 1-Map (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th RESOLUTION NO. 2018-248 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A CONSULTANT SERVICES AGREEMENT WITH PARAGON PARTNERS, LTD FOR RIGHT-OF-WAY ACQUISITION SERVICES FOR THE WIDENING OF 40TH STREET BETWEEN JOHNSON STREET AND ELECTRIC AVENUE (SS04-014) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Paragon Partners, LTD, located at 5660 Katella Avenue, Suite 100, Cypress, CA 90630, is a competent, experienced real estate right-of-way consulting firm and has provided the most advantageous and best proposal to provide Right-of-Way Acquisition Services for the Widening of 40th Street between Johnson Street and Electric Avenue, CIP Project No. SS04-014. An Agreement in the not-to-exceed amount of $123,100.00, with said firm to perform said right-of-way acquisition services, is attached hereto as Exhibit "A" and incorporated herein. Pursuant to this determination, the Purchasing Manager is hereby authorized and directed to issue a Purchase Order for said services to said firm, which references this Resolution. SECTION 2. The City Manager or designee is hereby authorized and directed to execute said Agreement on behalf of the City. SECTION 3. The authorization to execute the above-referenced Agreement is rescinded, if it is not executed within sixty (60) days of the passage of this resolution. /// /// /// /// /// 16.c Packet Pg. 577 Attachment: PW.40th Street Widening ROW.ATTACH 2-RESO (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th RESOLUTION NO. 2018-248 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A CONSULTANT SERVICES AGREEMENT WITH PARAGON PARTNERS, LTD FOR RIGHT-OF-WAY ACQUISITION SERVICES FOR THE WIDENING OF 40TH STREET BETWEEN JOHNSON STREET AND ELECTRIC AVENUE (SS04-014) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a _____________________ meeting thereof, held on the ____ day of ___________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, City Clerk The foregoing Resolution is hereby approved this __________ day of __________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By:____________________ 16.c Packet Pg. 578 Attachment: PW.40th Street Widening ROW.ATTACH 2-RESO (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th CONSULTANT SERVICES AGREEMENT City of San Bernardino and ______Paragon Partners, LTD______ CITY: CITY OF SAN BERNARDINO 290 North “D” Street San Bernardino, California 92401 CONSULTANT: Paragon Partners 5660 Katella Avenue, Suite 100 Cypress, CA 90630 Phone No. 714-379-3376 SERVICES: Right-of-Way Acquisition Services for the Widening of Fortieth Street between Johnson Street and Electric Avenue (SS04-014) AMOUNT: $123,100.00 EXPIRATION DATE: Until completion of the Scope of Services or December 31, 2019, whichever is earliest. MANAGING DEPARTMENT: Public Works 16.d Packet Pg. 579 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) TABLE OF CONTENTS 1.0 SCOPE OF AGREEMENT. ............................................................................................................................ 1 1.1 SCOPE OF SERVICES. ................................................................................................................................. 1 1.2 DUTY TO INFORM CITY OF CHANGES IN SCOPE OF SERVICES. ................................................................. 1 1.3 AGREEMENT NON-EXCLUSIVE. ................................................................................................................. 1 1.4 AGREEMENT INTERPRETATION. ............................................................................................................... 2 1.5 ORDER OF PRECEDENCE. .......................................................................................................................... 2 1.6 CITY MANAGER. ......................................................................................................................................... 2 1.7 NOTICES. ................................................................................................................................................... 2 2.0 TERM. ........................................................................................................................................................ 2 2.1 EFFECTIVE DATE. ...................................................................................................................................... 2 2.2 AGREEMENT EXTENSION. ......................................................................................................................... 3 3.0 CITY’S RIGHT TO SUSPEND FOR CONVENIENCE. ...................................................................................... 3 3.1 CITY’S RIGHT TO TERMINATE FOR CONVENIENCE. .................................................................................. 3 3.2 CITY’S RIGHT TO TERMINATE FOR DEFAULT. ........................................................................................... 3 3.3 TERMINATION FOR BANKRUPTCY OR ASSIGNMENT FOR THE BENEFIT OF CREDITORS. ......................... 4 3.4 CONSULTANT’S RIGHT TO PAYMENT FOLLOWING AGREEMENT TERMINATION ...................................... 4 3.5 REMEDIES CUMULATIVE. .......................................................................................................................... 4 4.0 INVOICE DATE. .......................................................................................................................................... 4 4.1 MANNER OF PAYMENT. ............................................................................................................................. 4 4.2 INVOICE DETAIL. ....................................................................................................................................... 4 4.3 AMOUNT OF COMPENSATION. ................................................................................................................... 5 4.4 ADDITIONAL SERVICES. ............................................................................................................................ 5 4.5 ADDITIONAL COSTS. .................................................................................................................................. 5 4.6 EIGHTY PERCENT NOTIFICATION. ............................................................................................................ 5 4.7 ANNUAL APPROPRIATION OF FUNDS. ....................................................................................................... 5 4.8 PRICE ADJUSTMENTS. ............................................................................................................................... 6 5.0 RIGHT TO AUDIT. ....................................................................................................................................... 6 5.1 AUDIT. ....................................................................................................................................................... 6 5.2 COST AUDIT. .............................................................................................................................................. 6 5.3 ACCOUNTING RECORDS. ........................................................................................................................... 6 5.4 SUBCONTRACTORS. ................................................................................................................................... 6 5.5 CONSULTANT AND SUBCONTRACTOR PRINCIPALS FOR CONSULTANT SERVICES. .................................. 7 5.6 RESPONSIBILITY FOR ERRORS. ................................................................................................................. 8 5.7 DELAY. ....................................................................................................................................................... 8 5.8 RESTRICTIONS AND REGULATIONS REQUIRING AGREEMENT MODIFICATION. ....................................... 8 5.9 INDUSTRY STANDARDS. ............................................................................................................................ 8 5.10 RECORDS RETENTION AND EXAMINATION. .............................................................................................. 9 5.11 QUALITY ASSURANCE MEETINGS. ............................................................................................................ 9 5.12 DUTY TO COOPERATE WITH AUDITOR. ..................................................................................................... 9 5.13 CRIMINAL BACKGROUND CERTIFICATION. ............................................................................................... 9 5.14 PHOTO IDENTIFICATION BADGE. .............................................................................................................. 9 5.15 STANDARDS OF CONDUCT. ...................................................................................................................... 10 5.16 SUPERVISION. ......................................................................................................................................... 10 5.17 CITY PREMISES........................................................................................................................................ 10 5.18 REMOVAL OF EMPLOYEES. ..................................................................................................................... 10 5.19 LICENSES AND PERMITS. ........................................................................................................................ 10 6.0 RIGHTS IN DATA. ..................................................................................................................................... 10 6.1 INTELLECTUAL PROPERTY RIGHTS ASSIGNMENT. ................................................................................. 10 6.2 CONSULTANT WORKS. ............................................................................................................................. 11 16.d Packet Pg. 580 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 6.3 SUBCONTRACTING. ................................................................................................................................. 11 6.4 INTELLECTUAL PROPERTY WARRANTY AND INDEMNIFICATION. .......................................................... 11 6.5 SOFTWARE LICENSING. ........................................................................................................................... 12 6.6 PUBLICATION. ......................................................................................................................................... 12 6.7 ROYALTIES, LICENSES, AND PATENTS. ................................................................................................... 12 7.0 INDEMNIFICATION. ................................................................................................................................. 12 7.1 INSURANCE. ............................................................................................................................................ 12 8.0 CITY POLICIES. ........................................................................................................................................ 16 8.2 AMERICANS WITH DISABILITIES ACT (ADA) AND STATE ACCESS LAWS AND REGULATIONS. ................ 16 8.3 NON-DISCRIMINATION. ........................................................................................................................... 16 8.4 BUSINESS REGISTRATION CERTIFICATE. ............................................................................................... 16 9.0 CONFLICT OF INTEREST LAWS. ............................................................................................................... 16 9.1 CONSULTANT’S RESPONSIBILITY FOR EMPLOYEES AND AGENTS. ......................................................... 17 9.2 CONSULTANT’S FINANCIAL OR ORGANIZATIONAL INTERESTS. .............................................................. 17 9.3 CERTIFICATION OF NON-COLLUSION. .................................................................................................... 17 9.4 HIRING CITY EMPLOYEES. ...................................................................................................................... 17 10.0 MEDIATION.............................................................................................................................................. 17 10.1 SELECTION OF MEDIATOR. ..................................................................................................................... 17 10.2 EXPENSES. .............................................................................................................................................. 17 10.3 CONDUCT OF MEDIATION SESSIONS. ...................................................................................................... 17 10.4 MEDIATION RESULTS. ............................................................................................................................. 18 11.0 MANDATORY ASSISTANCE. ...................................................................................................................... 18 11.1 COMPENSATION FOR MANDATORY ASSISTANCE. ................................................................................... 18 11.2 ATTORNEYS’ FEES RELATED TO MANDATORY ASSISTANCE. .................................................................. 18 12.0 HEADINGS. .............................................................................................................................................. 18 12.1 NON-ASSIGNMENT................................................................................................................................... 18 12.2 INDEPENDENT CONTRACTORS................................................................................................................ 19 12.3 SUBCONTRACTORS. ................................................................................................................................. 19 12.4 COVENANTS AND CONDITIONS. .............................................................................................................. 19 12.5 COMPLIANCE WITH CONTROLLING LAW................................................................................................. 19 12.6 GOVERNING LAW. .................................................................................................................................... 19 12.7 VENUE. .................................................................................................................................................... 19 12.8 SUCCESSORS IN INTEREST. ..................................................................................................................... 19 12.9 NO WAIVER. ............................................................................................................................................. 19 12.10 SEVERABILITY. ........................................................................................................................................ 19 12.11 DRAFTING AMBIGUITIES. ........................................................................................................................ 20 12.12 AMENDMENTS. ........................................................................................................................................ 20 12.13 CONFLICTS BETWEEN TERMS. ................................................................................................................ 20 12.14 SURVIVAL OF OBLIGATIONS. ................................................................................................................... 20 12.15 CONFIDENTIALITY OF SERVICES. ........................................................................................................... 20 12.17 NO THIRD PARTY BENEFICIARIES. .......................................................................................................... 20 12.18 ACTIONS OF CITY IN ITS GOVERNMENTAL CAPACITY. ........................................................................... 21 12.19 COUNTERPARTS. ..................................................................................................................................... 21 16.d Packet Pg. 581 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) CONSULTANT SERVICES AGREEMENT This Consultant Services Agreement is entered into by and between the City of San Bernardino, a charter city and municipal corporation (City), and Paragon Partners, LTD (Consultant). RECITALS WHEREAS, City wishes to retain a Consultant for Right-of-Way Acquisition Services for the Widening of Fortieth Street between Johnson Street and Electric Avenue (SS04-014) in accordance with Consultant’s Proposals dated May 31, 2018, attached to this Agreement as Attachments “A” which is made a part of this Agreement by reference. (Services); and WHEREAS, Consultant has the expertise, experience, and personnel necessary to provide the Services including, as applicable, that degree of specialized expertise contemplated by Government Code section 37103; and WHEREAS, City and Consultant (collectively, the Parties) wish to enter into an agreement whereby City will retain Consultant to provide the Services. NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is acknowledged, City and Consultant agree as follows: ARTICLE I SCOPE OF AGREEMENT AND AGREEMENT MANAGEMENT 1.0 Scope of Agreement. This scope of the entire agreement between the parties is described in the Agreement Documents. The Agreement Documents are comprised of: the Request for Proposal or other solicitation document (Solicitation); the successful bid or proposal; the letter awarding the Agreement to Consultant; the City’s written acceptance of exceptions or clarifications to the Solicitation, if any; and this Consultant Services Agreement (Agreement) including any exhibits hereto. 1.1 Scope of Services. Consultant shall provide the Services as described in the Scope of Services contained in said Attachment “A”. 1.2 Duty to Inform City of Changes in Scope of Services. Consultant shall immediately advise the City in writing of any anticipated change in the Scope of Services, stipulated remuneration, or time schedule, and shall obtain the City’s written consent to the change prior to making any changes. In no event shall the City’s consent be construed to relieve Consultant from its duty to render all Services in accordance with applicable law and industry standards. 1.3 Agreement Non-Exclusive. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the Services or may have its own employees perform services similar to the Services. pg. 1 Consultant Services Agreement _______________________ 16.d Packet Pg. 582 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 1.4 Agreement Interpretation. The Agreement Documents completely describe the Services. Consultant will provide any services that may reasonably be inferred from the Agreement Documents or from prevailing custom or trade usage as being required to produce the intended result whether or not specifically called for or identified in the Agreement Documents. Words or phrases which have a well-known technical or construction industry or trade meaning and are used to describe Services will be interpreted in accordance with that meaning unless a definition has been provided in the Agreement Documents. 1.5 Order of Precedence. In resolving conflicts resulting from errors or discrepancies in any of the Agreement Documents, the terms of this Agreement shall prevail over any inconsistent provision in any other Agreement Document, including exhibits to this Agreement. 1.6 City Manager. The City Manager, or designee named below in Section 1.7, is the authorized representative of the City for purposes of this Agreement, and has the responsibilities described in this Agreement, in the San Bernardino Charter, and in Chapter 3.04 of the San Bernardino Municipal Code. The City Manager must sign all Agreement amendments. 1.7 Notices. Unless otherwise specified, in all cases where written notice is required under this Agreement, service shall be deemed sufficient if the notice is personally delivered or deposited in the United States mail, with first class postage paid, attention to the City Manager. Proper notice is effective on the date of personal delivery or five (5) days after deposit in a United States postal mailbox unless provided otherwise in the Agreement. Notices for each party shall be sent to: FOR THE CITY: Andrea M. Miller, City Manager City of San Bernardino 290 North D St San Bernardino, CA 92401 FOR THE CONSULTANT Mark Mendoza Paragon Partners, LTD 5660 Katella Avenue, Suite 100 Cypress, CA 90630 Phone: 714-379-3376 ARTICLE II TERM OF AGREEMENT 2.0 Term. Unless otherwise terminated, this Agreement shall be effective until completion of the Scope of Services or DECEMBER 31, 2019, whichever is earliest. 2.1 Effective Date. This Agreement shall be effective on the date it is executed by the pg. 2 Consultant Services Agreement _______________________ 16.d Packet Pg. 583 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) last Party to sign the Agreement, and approved as to form by the City Attorney. 2.2 Agreement Extension. The City Manager may, in his sole discretion, unilaterally extend the Agreement on a month-to-month basis following Agreement expiration. Consultant shall not increase its pricing described in Exhibit A without prior express written consent from the City Manager. ARTICLE III SUSPENSION AND TERMINATION 3.0 City’s Right to Suspend for Convenience. City may suspend all or any portion of Consultant’s performance under this Agreement at its sole option and for its convenience for a reasonable period of time not to exceed six (6) months. City must first give ten (10) days’ written notice to Consultant of such suspension. City will pay to Consultant a sum equivalent to the reasonable value of the services satisfactorily provided up to the date of suspension. City may rescind the suspension prior to or at six (6) months by providing Consultant with written notice of the rescission, at which time Consultant would be required to resume performance in compliance with the terms and conditions of this Agreement. Consultant will be entitled to an extension of time to complete performance under the Agreement equal to the length of the suspension unless otherwise agreed to in writing by the Parties. 3.1 City’s Right to Terminate for Convenience. City may, at its sole option and for its convenience, terminate all or any portion of this Agreement by giving thirty (30) days’ written notice of such termination to Consultant. The termination of the Agreement shall be effective upon receipt of the notice by Consultant. After termination of all or any portion of the Agreement, Consultant shall: (1) immediately discontinue all affected performance (unless the notice directs otherwise); and (2) complete any and all additional work necessary for the orderly filing of documents and closing of Consultant's affected performance under the Agreement. After filing of documents and completion of performance, Consultant shall deliver to City all data, drawings, specifications, reports, estimates, summaries, and such other information and materials created or received by Consultant in performing this Agreement, whether completed or in process. By accepting payment for completion, filing, and delivering documents as called for in this section, Consultant discharges City of all of City’s payment obligations and liabilities under this Agreement with regard to the affected performance. 3.2 City’s Right to Terminate for Default. Consultant’s failure to satisfactorily perform any obligation required by this Agreement constitutes a default. Examples of default include a determination by City that Consultant has: (1) failed to perform the services of the required quality or within the time specified; (2) failed to perform any of the obligations of this Agreement; and (3) failed to make sufficient progress in performance which may jeopardize full performance. 3.2.1 If Consultant fails to satisfactorily cure a default within ten (10) calendar days of receiving written notice from City specifying the nature of the default, City may immediately cancel and/or terminate this Agreement, and terminate each and every right of Consultant, and any person claiming any pg. 3 Consultant Services Agreement _______________________ 16.d Packet Pg. 584 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) rights by or through Consultant under this Agreement. 3.2.2 If City terminates this Agreement, in whole or in part, City may procure, upon such terms and in such manner as the City Manager may deem appropriate, equivalent services and Consultant shall be liable to City for any excess costs. Consultant shall also continue performance to the extent not terminated. 3.3 Termination for Bankruptcy or Assignment for the Benefit of Creditors. If Consultant files a voluntary petition in bankruptcy, is adjudicated bankrupt, or makes a general assignment for the benefit of creditors, the City may at its option and without further notice to, or demand upon Consultant, terminate this Agreement, and terminate each and every right of Consultant, and any person claiming rights by and through Consultant under this Agreement. 3.4 Consultant’s Right to Payment Following Agreement Termination. 3.4.1 Termination for Convenience. If the termination is for the convenience of City an equitable adjustment in the Agreement price shall be made. No amount shall be allowed for anticipated profit on unperformed services, and no amount shall be paid for an as needed Agreement beyond the Agreement termination date. 3.4.2 Termination for Default. If, after City gives notice of termination for failure to fulfill Agreement obligations to Consultant, it is determined that Consultant had not so failed, the termination shall be deemed to have been effected for the convenience of City. In such event, adjustment in the Agreement price shall be made as provided in Section 3.1. City’s rights and remedies are in addition to any other rights and remedies provided by law or under this Agreement. 3.5 Remedies Cumulative. City’s remedies are cumulative and are not intended to be exclusive of any other remedies or means of redress to which City may be lawfully entitled in case of any breach or threatened breach of any provision of this Agreement. ARTICLE IV COMPENSATION 4.0 Invoice Date. Consultant must submit invoices for services to City by the 10th day of the month following the month in which Consultant provided services. 4.1 Manner of Payment. Consultant will be paid monthly, in arrears, for services provided in accordance with the terms and conditions specified in the Agreement within forty-five (45) days of receiving an invoice. City shall pay Consultant in accordance with the terms contained within Attachment B. Consultant is not entitled to fees, including fees for expenses, that exceed the amounts specified in Attachment B. 4.2 Invoice Detail. Consultant’s invoice must be on Consultant’s stationary with pg. 4 Consultant Services Agreement _______________________ 16.d Packet Pg. 585 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) Consultant’s name, address, and remittance address if different. Consultant’s invoice must have a date, an invoice number, a purchase order number, a description of the services provided, and an amount due. Invoices must include the address of the location where services were performed and the dates in which services were provided. Consultant shall also submit one statement of progress with the invoice and at least once per calendar month to the Director of Public Works. Consultant shall include with each statement of progress a description of completed Services, reasonably related expenses, if any, and all other information, including but not limited to the progress percentage of the Scope of Services and/or deliverables completed prior to the reporting date, as required by the City. 4.3 Amount of Compensation. City shall pay Consultant for performance of all Services rendered in accordance with this Agreement, including, fees for Additional Services, as defined below, and out-of-pocket expenses (Expenses), in an amount not to exceed one hundred twenty three thousand one hundred dollars and no cents ($123,100.00). Progress billing rates shall be based on the rates indicated in Attachment B. The rates are valid throughout the term of the Agreement or until the Scope of Services are completed unless otherwise amended and agreed by both parties in writing. 4.4 Additional Services. City may require Consultant to perform additional Services beyond those described in the Scope of Services (Additional Services). Before Consultant commences such work, the Parties must agree in writing upon a fee for the Additional Services, including reasonably related expenses, in accordance with Section 4.3. City will not pay Consultant for Additional Services unless Consultant receives prior written authorization from the City Manager. Failure to do so will result in payment being withheld for services. If approved, Consultant will separately invoice for all Additional Services and include a copy of the City Manager’s written authorization. 4.5 Additional Costs. Additional Costs are costs that can be reasonably determined to be related to Consultant’s errors or omissions. Consultant shall not be paid for the Services required due to the Consultant’s errors or omissions, and Consultant shall be responsible for any Additional Costs incurred by the City, including overhead, associated with such errors or omissions. These Additional Costs may be deducted from monies due, or that become due, to Consultant. Whether or not there are any monies due, or becoming due, Consultant shall reimburse City for Additional Costs due to Consultant’s errors or omissions. 4.6 Eighty Percent Notification. Consultant shall promptly notify City in writing of any potential cost overruns. Cost overruns include, but are not limited to the following: (1) where anticipated costs to be incurred in the next sixty calendar days, when added to all costs previously incurred, will exceed 80 percent of the maximum compensation for this Agreement; or (2) where the total cost for performance of the Scope of Services appears that it may be greater than the maximum compensation for this Agreement. 4.7 Annual Appropriation of Funds. Consultant acknowledges that the Agreement term may extend over multiple City fiscal years, and that work and compensation under this Agreement is contingent on the Mayor and City Council appropriating funding for and authorizing such work and compensation for those fiscal years. This Agreement may be terminated at the end of the fiscal year for which sufficient funding is not appropriated and pg. 5 Consultant Services Agreement _______________________ 16.d Packet Pg. 586 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) authorized. City is not obligated to pay Consultant for any amounts not duly appropriated and authorized by Mayor and City Council. 4.8 Price Adjustments. Based on Consultant’s written request and justification, the City may approve an increase in unit prices on Consultant’s pricing pages consistent with the amount requested in the justification in an amount not to exceed the increase in the Consumer Price Index, Riverside-San Bernardino-Ontario Area, for All Urban Customers (CPI-U) as published by the Bureau of Labor Statistics, or 5.0%, whichever is less, during the preceding one year term. If the CPI-U is a negative number, then the unit prices shall not be adjusted for that option year (the unit prices will not be decreased). A negative CPI-U shall be counted against any subsequent increases in the CPI-U when calculating the unit prices for later option years. Consultant must provide such written request and justification no less than sixty days before the date in which City may exercise the option to renew the Agreement, or sixty days before the anniversary date of the Agreement. Justification in support of the written request must include a description of the basis for the adjustment, the proposed effective date and reasons for said date, and the amount of the adjustment requested with documentation to support the requested change (e.g. CPI-U or 5.0%, whichever is less). City’s approval of this request must be in writing. ARTICLE V CONSULTANT’S OBLIGATIONS 5.0 Right to Audit. City retains the right to review and audit, and the reasonable right of access to Consultant’s and any Subcontractor’s premises, to review and audit Consultant’s or Subcontractor’s compliance with the provisions of this Agreement (City’s Right). City’s Right includes the right to inspect, photocopy, and retain copies of any and all books, records, documents and any other information (Records) relating to this Agreement outside of Consultant’s premises if deemed necessary by City in its sole discretion. City shall keep these Records confidential to the extent permitted by law. 5.1 Audit. City’s Right includes the right to examine Records of procedures and practices that City determines are necessary to discover and verify that Consultant or Subcontractor is in compliance with all requirements under this Agreement. 5.2 Cost Audit. If there is a claim for additional compensation or for Additional Services, the City’s Right includes the right to Records that the City determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred. 5.3 Accounting Records. Consultant and all subcontractors shall maintain complete and accurate Records in accordance with generally accepted accounting practices. Consultant and Subcontractors shall make available to City for review and audit all Records relating to the Services. Upon City’s request, Consultant and Subcontractors shall submit exact duplicates of originals of all requested records to City. 5.4 Subcontractors. Consultant’s hiring or retaining of any third parties (Subcontractors) to perform Services (Subcontractor Services) is subject to City’s prior written approval. Consultant shall list all Subcontractors known to Consultant on the pg. 6 Consultant Services Agreement _______________________ 16.d Packet Pg. 587 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) Subcontractor List at the time this Agreement is entered. Consultant shall give written notice to the City of the need at least 45 days before entering into a contract for such Subcontractor Services. Consultant’s notice shall include a justification, a description of the Scope of Services, and an estimate of all costs for Subcontractor Services. Consultant may request that City reduce the 45-day notice period. City agrees to consider such requests in good faith. 5.4.1 City’s Right Binding on Subcontractors. Consultant shall include City’s Right as described in this Section 5.0 in any and all of their subcontracts, and shall ensure that these sections are binding upon all Subcontractors. 5.4.2 Subcontractor Contract. Consultant shall require Subcontractor to obtain and maintain insurance policies as required by City for the duration of this Agreement. Consultant shall determine Subcontractor policy limits and required endorsements proportionate to the services performed by Subcontractor. 5.4.3 Payment to Subcontractor. Consultant is obligated to pay Subcontractor, for Consultant and City- approved invoice amounts, out of amounts paid by City to Consultant not later than fourteen (14) working days from Consultant’s receipt of payment from City. Nothing in this paragraph shall be construed to impair the right of Consultant and any Subcontractor to negotiate fair and reasonable pricing and payment provisions among themselves. 5.4.4 Withholding Subcontractor Payment. If Subcontractor’s performance is deficient, Consultant shall notify City in writing of any withholding of payment to Subcontractor, specifying: (a) the amount withheld; (b) the specific cause under the terms of the subcontract for withholding payment; (c) the connection between the cause for withholding payment and the amount withheld; and (d) the remedial action Subcontractor must take in order to receive the amount withheld. Once Subcontractor corrects the deficiency, Consultant shall pay Subcontractor the amount withheld within fourteen working days of the Consultant’s receipt of City’s next payment. 5.4.5 Disputes with Subcontractor. City shall not be made a party to any judicial or administrative proceeding to resolve any dispute between Consultant and Subcontractor. Consultant agrees to defend and indemnify the City as described in Section 7.0 in any dispute between Consultant and Subcontractor should City be made a party to any judicial or administrative proceeding to resolve the dispute in violation of this position. 5.4.6 City as Beneficiary. City is an intended beneficiary of any work performed by Subcontractor for purposes of establishing a duty of care between Subcontractor and City. 5.5 Consultant and Subcontractor Principals for Consultant Services. This Agreement is for unique Services. City has retained Consultant based on Consultant’s particular professional expertise as exhibited by the following members of the Consultant's pg. 7 Consultant Services Agreement _______________________ 16.d Packet Pg. 588 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) organization: Mark Mendoza, Dan Akins, Thomas Boyle, Peter Rhoads, Amy Betonte, Brett Brown, John Penner and Chris Maziar. Consultant may not delegate the performance of Services to Subcontractors without City’s prior written consent. It is mutually agreed that the members of the Project Team are the principal persons responsible for delivery of all Services and may not be removed from the Project without the City’s prior written approval. City may consider Consultant in default of this Agreement if any member of the Project Team is prevented from providing Services without City’s prior written approval. Consultant must consult City as to any replacement if any member of the Project Team becomes unavailable. City may terminate this Agreement if City does not approve of a proposed replacement. Further, City reserves the right, after consultation with Consultant, to require any of Consultant’s employees or agents to be removed from providing Services under this Agreement. 5.6 Responsibility for Errors. Consultant shall be responsible for its services and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City Manager or designee, regarding any services rendered under this Agreement at no additional cost to City. 5.7 Delay. Unless otherwise specified herein, time is of the essence for each and every provision of the Agreement. Consultant must immediately notify City in writing if there is, or it is anticipated that there will be, a delay in performance. The written notice must explain the cause for the delay and provide a reasonable estimate of the length of the delay. City may terminate this Agreement as provided herein if City, in its sole discretion, determines the delay is material. If a delay in performance is caused by any unforeseen event(s) beyond the control of the parties, City may allow Consultant to a reasonable extension of time to complete performance, but Consultant will not be entitled to damages or additional compensation. Any such extension of time must be approved in writing by City. The following conditions may constitute such a delay: war; changes in law or government regulation; labor disputes; strikes; fires, floods, adverse weather or other similar condition of the elements necessitating cessation of the performance; inability to obtain materials, equipment or labor; or other specific reasons agreed to between City and Consultant. This provision does not apply to a delay caused by Consultant’s acts or omissions. Consultant is not entitled to an extension of time to perform if a delay is caused by Consultant’s inability to obtain materials, equipment, or labor unless City has received, in a timely manner, documentary proof satisfactory to City of Consultant’s inability to obtain materials, equipment, or labor, in which case City’s approval must be in writing. 5.8 Restrictions and Regulations Requiring Agreement Modification. Consultant shall immediately notify City in writing of any regulations or restrictions that may or will require Consultant to alter the services to be provided. City reserves the right to accept any such alteration, including any resulting reasonable price adjustments, or to cancel the Agreement at no expense to the City. 5.9 Industry Standards. Consultant shall provide services acceptable to City in strict conformance with the Agreement. Consultant shall also provide services in accordance with the standards customarily adhered to by an experienced and competent provider of the services called for under this Agreement using the degree of care and skill ordinarily exercised by reputable providers of such services. Where approval by City Manager or other pg. 8 Consultant Services Agreement _______________________ 16.d Packet Pg. 589 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) representative of City is required, it is understood to be general approval only and does not relieve Consultant of responsibility for complying with all applicable laws, codes, policies, regulations, and good business practices. 5.10 Records Retention and Examination. Consultant shall retain, protect, and maintain in an accessible location all records and documents, including paper, electronic, and computer records, relating to this Agreement for five (5) years after receipt of final payment by City under this Agreement. Consultant shall make all such records and documents available for inspection, copying, or other reproduction, and auditing by authorized representatives of City, including the City Manager or designee. Consultant shall make available all requested data and records at reasonable locations within City or County of San Bernardino at any time during normal business hours, and as often as City deems necessary. If records are not made available within the City or County of San Bernardino, Consultant shall pay City’s travel costs to the location where the records are maintained and shall pay for all related travel expenses. Failure to make requested records available for inspection, copying, or other reproduction, or auditing by the date requested may result in termination of the Agreement. Consultant must include this provision in all subcontracts made in connection with this Agreement. Consultant shall maintain records of all subcontracts entered into with all firms, all project invoices received from Subcontractors and Suppliers, all purchases of materials and services from Suppliers, and all joint venture participation. Records shall show name, telephone number including area code, and business address of each Subcontractor and Supplier, and joint venture partner, and the total amount actually paid to each firm. Project relevant records, regardless of tier, may be periodically reviewed by the City. 5.11 Quality Assurance Meetings. Upon City’s request, Consultant shall schedule one or more quality assurance meetings with City Manager or designee to discuss Consultant’s performance. If requested, Consultant shall schedule the first quality assurance meeting no later than eight (8) weeks from the date of commencement of work under the Agreement. At the quality assurance meeting(s), City Manager or designee will provide Consultant with feedback, will note any deficiencies in Agreement performance, and provide Consultant with an opportunity to address and correct such deficiencies. The total number of quality assurance meetings that may be required by City will depend upon Consultant’s performance. 5.12 Duty to Cooperate with Auditor. The City Manager or designee may, in his sole discretion, at no cost to the City, and for purposes of performing the City’s audit responsibilities under Charter section 704, review Consultant’s records to confirm Agreement compliance. Consultant shall make reasonable efforts to cooperate with City Manager’s requests. 5.13 Criminal Background Certification. Consultant certifies that all employees working on this Agreement have had a criminal background check and that said employees are clear of any felony convictions. 5.14 Photo Identification Badge. Consultant shall provide a company photo identification badge to any individual assigned by Consultant or subcontractor to perform services on City premises. Such badge must be worn at all times while on City premises. City reserves the pg. 9 Consultant Services Agreement _______________________ 16.d Packet Pg. 590 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) right to require Consultant to pay fingerprinting fees for personnel assigned to work in sensitive areas. All employees shall turn in their photo identification badges to Consultant upon completion of services and prior to final payment of invoice. 5.15 Standards of Conduct. Consultant is responsible for maintaining standards of employee competence, conduct, courtesy, appearance, honesty, and integrity satisfactory to the City. 5.16 Supervision. Consultant shall provide adequate and competent supervision at all times during the Agreement term. Consultant shall be readily available to meet with the City. Consultant shall provide the telephone numbers where its representative(s) can be reached. 5.17 City Premises. Consultant’s employees and agents shall comply with all City rules and regulations while on City premises. 5.18 Removal of Employees. City may request Consultant immediately remove from assignment to the City any employee found unfit to perform duties at the City. Consultant shall comply with all such requests. 5.19 Licenses and Permits. Consultant shall, without additional expense to the City, be responsible for obtaining any necessary licenses, permits, certifications, accreditations, fees and approvals for complying with any federal, state, county, municipal, and other laws, codes, and regulations applicable to Agreement performance. This includes, but is not limited to, any laws or regulations requiring the use of licensed Consultants to perform parts of the work. ARTICLE VI INTELLECTUAL PROPERTY RIGHTS 6.0 Rights in Data. If, in connection with the services performed under this Agreement, Consultant or its employees, agents, or subcontractors, create artwork, audio recordings, blueprints, designs, diagrams, documentation, photographs, plans, reports, software, source code, specifications, surveys, system designs, video recordings, or any other original works of authorship, whether written or readable by machine (Deliverable Materials), all rights of Consultant or its subcontractors in the Deliverable Materials, including, but not limited to publication, and registration of copyrights, and trademarks in the Deliverable Materials, are the sole property of City. Consultant, including its employees, agents, and subcontractors, may not use any Deliverable Material for purposes unrelated to Consultant’s work on behalf of the City without prior written consent of City. Consultant may not publish or reproduce any Deliverable Materials, for purposes unrelated to Consultant’s work on behalf of the City, without the prior written consent of the City. 6.1 Intellectual Property Rights Assignment. For no additional compensation, Consultant hereby assigns to City all of Consultant’s rights, title, and interest in and to the content of the Deliverable Materials created by Consultant or its employees, agents, or subcontractors, including copyrights, in connection with the services performed under this Agreement. Consultant shall promptly execute and deliver, and shall cause its employees, pg. 10 Consultant Services Agreement _______________________ 16.d Packet Pg. 591 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) agents, and subcontractors to promptly execute and deliver, upon request by the City or any of its successors or assigns at any time and without further compensation of any kind, any power of attorney, assignment, application for copyright, patent, trademark or other intellectual property right protection, or other papers or instruments which may be necessary or desirable to fully secure, perfect or otherwise protect to or for the City, its successors and assigns, all right, title and interest in and to the content of the Deliverable Materials. Consultant also shall cooperate and assist in the prosecution of any action or opposition proceeding involving such intellectual property rights and any adjudication of those rights. 6.2 Consultant Works. Consultant Works means tangible and intangible information and material that: (a) had already been conceived, invented, created, developed or acquired by Consultant prior to the effective date of this Agreement; or (b) were conceived, invented, created, or developed by Consultant after the effective date of this Agreement, but only to the extent such information and material do not constitute part or all of the Deliverable Materials called for in this Agreement. All Consultant Works, and all modifications or derivatives of such Consultant Works, including all intellectual property rights in or pertaining to the same, shall be owned solely and exclusively by Consultant. 6.3 Subcontracting. In the event that Consultant utilizes a subcontractor(s) for any portion of the work that comprises the whole or part of the specified Deliverable Materials to the City, the agreement between Consultant and the subcontractor shall include a statement that identifies the Deliverable Materials as a “works for hire” as described in the United States Copyright Act of 1976, as amended, and that all intellectual property rights in the Deliverable Materials, whether arising in copyright, trademark, service mark or other forms of intellectual property rights, belong to and shall vest solely with the City. Further, the agreement between Consultant and its subcontractor shall require that the subcontractor, if necessary, shall grant, transfer, sell and assign, free of charge, exclusively to City, all titles, rights and interests in and to the Deliverable Materials, including all copyrights, trademarks and other intellectual property rights. City shall have the right to review any such agreement for compliance with this provision. 6.4 Intellectual Property Warranty and Indemnification. Consultant represents and warrants that any materials or deliverables, including all Deliverable Materials, provided under this Agreement are either original, or not encumbered, and do not infringe upon the copyright, trademark, patent or other intellectual property rights of any third party, or are in the public domain. If Deliverable Materials provided hereunder become the subject of a claim, suit or allegation of copyright, trademark or patent infringement, City shall have the right, in its sole discretion, to require Consultant to produce, at Consultant’s own expense, new non-infringing materials, deliverables or works as a means of remedying any claim of infringement in addition to any other remedy available to the City under law or equity. Consultant further agrees to indemnify, defend, and hold harmless the City, its officers, employees and agents from and against any and all claims, actions, costs, judgments or damages, of any type, alleging or threatening that any Deliverable Materials, supplies, equipment, services or works provided under this Agreement infringe the copyright, trademark, patent or other intellectual property or proprietary rights of any third party (Third Party Claim of Infringement). If a Third Party Claim of Infringement is threatened or made before Consultant receives payment under this Agreement, City shall be entitled, pg. 11 Consultant Services Agreement _______________________ 16.d Packet Pg. 592 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) upon written notice to Consultant, to withhold some or all of such payment. 6.5 Software Licensing. Consultant represents and warrants that the software, if any, as delivered to City, does not contain any program code, virus, worm, trap door, back door, time or clock that would erase data or programming or otherwise cause the software to become inoperable, inaccessible, or incapable of being used in accordance with its user manuals, either automatically, upon the occurrence of licensor-selected conditions or manually on command. Consultant further represents and warrants that all third party software, delivered to City or used by Consultant in the performance of the Agreement, is fully licensed by the appropriate licensor. 6.6 Publication. Consultant may not publish or reproduce any Deliverable Materials, for purposes unrelated to Consultant’s work on behalf of the City without prior written consent from the City. 6.7 Royalties, Licenses, and Patents. Unless otherwise specified, Consultant shall pay all royalties, license, and patent fees associated with providing services under this Agreement. Consultant warrants that any goods, materials, supplies, and equipment to be supplied do not infringe upon any patent, trademark, or copyright, and further agrees to defend any and all suits, actions and claims for infringement that are brought against the City, and to defend, indemnify and hold harmless the City, its elected officials, officers, and employees from all liability, loss and damages, whether general, exemplary or punitive, suffered as a result of any actual or claimed infringement asserted against the City, Consultant, or those furnishing goods, materials, supplies, or equipment to Consultant under the Agreement. ARTICLE VII INDEMNIFICATION AND INSURANCE 7.0 Indemnification. To the fullest extent permitted by law, Consultant shall defend (with legal counsel reasonably acceptable to City), indemnify, protect, and hold harmless City and its elected officials, officers, employees, agents, and representatives (Indemnified Parties) from and against any and all claims, losses, costs, damages, injuries (including, without limitation, injury to or death of an employee of Consultant or its subcontractors), expense, and liability of every kind, nature and description (including, without limitation, incidental and consequential damages, court costs, and litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation) that arise out of, pertain to, or relate to, directly or indirectly, in whole or in part, any goods provided or performance of services under this Agreement by Consultant, any subcontractor, anyone directly or indirectly employed by either of them, or anyone that either of them control. Consultant’s duty to defend, indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or willful misconduct of the Indemnified Parties. 7.1 Insurance. Consultant shall not begin any performance under this Agreement until it has (1) provided City insurance certificates and endorsements reflecting evidence of all insurance and endorsements required and described herein; (2) obtained City approval of each insurance company or companies; and (3) confirmed that all policies contain the pg. 12 Consultant Services Agreement _______________________ 16.d Packet Pg. 593 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) special provisions required herein. Consultant’s liabilities, including but not limited to Consultant’s indemnity obligations, under this Agreement, shall not be deemed limited in any way to the insurance coverage required herein. Maintenance of specified insurance coverage is a material element of this Agreement, and Consultant’s failure to maintain or renew coverage or to provide evidence of renewal during the term of this Agreement may be treated by City as a material breach of Agreement. City reserves the right to require Consultant to submit copies of any policy upon reasonable request by City. 7.1.1 All policies shall include, and the insurance certificates shall reflect, a 30-day non-cancellation clause that provides thirty (30) days written notice by certified mail to City prior to any material change or cancellation of any of said policies. 7.1.2 Consultant shall not modify any policy or endorsement thereto which increases City's exposure to loss for the duration of this Agreement. 7.1.3 Consultant shall maintain insurance coverage at its own expense as follows: 7.1.3.1 Commercial General Liability. Commercial General Liability (CGL) insurance written on an ISO Occurrence form CG 00 01 07 98 or an equivalent form providing coverage at least as broad which shall cover liability arising from any and all bodily injury, personal injury, advertising injury or property damage in the amount of $1 million per occurrence and subject to an annual aggregate of $2 million. There shall be no endorsement or modification of the CGL limiting the scope of coverage for either insured claims or contractual liability. All defense costs shall be outside the limits of the policy. 7.1.3.2 Commercial Automobile Liability. For all of Consultant’s automobiles including owned, hired and non-owned automobiles, Consultant shall keep in full force and effect, automobile insurance written on an ISO form CA 00 01 12 90 or a later version of this form or an equivalent form providing coverage at least as broad for bodily injury and property damage for a combined single limit of $1 million per occurrence. The insurance certificate shall reflect coverage for any automobile (any auto). 7.1.3.3 Workers' Compensation. For all of Consultant's employees who are subject to this Agreement and to the extent required by the applicable state or federal law, Consultant shall keep in full force and effect, a Workers’ Compensation policy. That policy shall provide a minimum of $1 million of employer’s liability coverage, and Consultant shall provide an endorsement that the insurer waives the right of subrogation against City and its respective elected officials, officers, employees, agents, and representatives. 7.1.3.4 Professional Liability. Consultant shall obtain Professional Liability coverage with limits of at least $1 million per occurrence and $2 pg. 13 Consultant Services Agreement _______________________ 16.d Packet Pg. 594 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) million aggregate, covering the risk of errors and omissions, negligent acts and costs of claims/litigation, including investigation and court costs. If the coverage is written on a “claims-made” form, Consultant must ensure that the policy retroactive date is before the date of the Agreement is awarded, that coverage is maintained during the duration of performance of the Agreement or the Agreement period (whichever is longer) and the policy has a reporting period or run-off provision of at least three (3) years following completion or termination of the performance of professional services under this Agreement. 7.1.4 Deductibles. All deductibles or retentions on any policy shall be the sole responsibility of Consultant and shall be disclosed to City at the time the evidence of insurance is provided. 7.1.5 Acceptability of Insurers. Except for the State Compensation Insurance Fund, all insurance required by this Agreement, shall only be carried by insurance companies with a current rating of at least “A-, VI” by A.M. Best Company that are authorized by the California Insurance Commissioner to do business in the State of California, and that have been approved by City. 7.1.5.1 City will accept insurance provided by non-admitted, “surplus lines” carriers only if the carrier is authorized to do business in the State of California and is included on the List of Approved Surplus Lines Insurers (LASLI list). All policies of insurance carried by non-admitted carriers are subject to all of the requirements for policies of insurance provided by admitted carriers described herein. 7.1.6 Required Endorsements. The following endorsements to the policies of insurance are required to be provided to City before any performance is initiated under this Agreement: 7.1.6.1 Commercial General Liability Insurance Endorsements. 7.1.6.1.1 Additional Insured. To the fullest extent allowed by law, including but not limited to California Insurance Code section 11580.04, the policy or policies must be endorsed to include as an insured City of San Bernardino and its respective elected officials, officers, employees, agents and representatives with respect to liability arising out of (a) ongoing operations performed by you or on your behalf, (b) your products, (c) your work, including but not limited to your completed operations performed by you or on your behalf, or (d) premises owned, leased, controlled or used by you. 7.1.6.1.2 Primary and Non-contributory Coverage. The policy or policies must be endorsed to provide that the insurance afforded by the Commercial General Liability policy or policies is primary to any insurance or self-insurance of City, its elected officials, officers, pg. 14 Consultant Services Agreement _______________________ 16.d Packet Pg. 595 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) employees, agents and representatives as respects operations of the Named Insured. Any insurance maintained by City, its elected officials, officers, employees, agents and representatives shall be in excess of Consultant’s insurance and shall not contribute to it. 7.1.6.1.3 Severability of Interest. The policy or policies must be endorsed to provide that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability and shall provide cross-liability coverage. 7.1.6.2 Automobile Liability Insurance Endorsements. 7.1.6.2.1 Additional Insured. To the fullest extent allowed by law, including but not limited to California Insurance Code section 11580.04, the policy or policies must be endorsed to include as an insured City of San Bernardino and its respective elected officials, officers, employees, agents and representatives with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of Consultant. 7.1.6.2.2 Primary and Non-contributory Coverage. The policy or policies must be endorsed to provide that the insurance afforded by the Automobile Liability policy or policies is primary to any insurance or self-insurance of City, its elected officials, officers, employees, agents and representatives as respects operations of the Named Insured. Any insurance maintained by City, its elected officials, officers, employees, agents and representatives shall be in excess of Consultant’s insurance and shall not contribute to it. 7.1.6.2.3 Severability of Interest. The policy or policies must be endorsed to provide that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability and shall provide cross-liability coverage. 7.1.6.3 Worker’s Compensation Insurance Endorsements. 7.1.6.3.1 Waiver of Subrogation. The Worker’s Compensation policy or policies must be endorsed to provide that the insurer will waive all rights of subrogation against City of San Bernardino, its elected officials, officers, employees, agents and representatives for losses paid under the terms of this policy or these policies which arise from work performed by the Named Insured for City. 7.1.6.3.2 Reservation of Rights. City reserves the right, from time to time, to review Consultant’s insurance coverage, limits, deductible, and self-insured retentions to determine if they are acceptable to City. pg. 15 Consultant Services Agreement _______________________ 16.d Packet Pg. 596 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) City will reimburse Consultant for the cost of the additional premium for any coverage requested by City in excess of that required by this Agreement, without overhead, profit, or any other markup. 7.1.7 Additional Insurance. Consultant may obtain additional insurance not required by this Agreement. 7.1.8 Excess Insurance. All policies providing excess coverage to City shall follow the form of the primary policy or policies including but not limited to all endorsements. ARTICLE VIII CITY REQUIREMENTS 8.0 City Policies. By signing this Agreement, Consultant certifies that Consultant is aware of, and will comply with, these policies throughout the duration of the Agreement. Consultant shall ensure that this language is included in Agreements between Consultant and any Subcontractors, vendors and suppliers. 8.1 Drug-Free Workplace. Consultant shall comply with City’s Drug-Free Workplace requirements. 8.2 Americans with Disabilities Act (ADA) and State Access Laws and Regulations. Consultant shall comply with all accessibility requirements under the ADA and under Title 24 of the California Code of Regulations (Title 24). When a conflict exists between the ADA and Title 24, Consultant shall comply with the most restrictive requirement (i.e., that which provides the most access). 8.3 Non-Discrimination. Consultant shall not discriminate on the basis of race, gender, gender expression, gender identity, religion, national origin, ethnicity, sexual orientation, age, or disability in the solicitation, selection, hiring or treatment of subcontractors, vendors or suppliers. Consultant shall provide equal opportunity for subcontractors to participate in subcontracting opportunities. Consultant understands and agrees that violation of this clause shall be considered a material breach of the Agreement and may result in Agreement termination, debarment, or other sanctions. Consultant shall ensure that this language is included in Agreements between Consultant and any subcontractors, vendors and suppliers. 8.4 Business Registration Certificate. Any company doing business with the City of San Bernardino is required to obtain a Business Registration Certificate and to provide a copy of its Business Registration Certificate to the City before an Agreement is executed. ARTICLE IX CONFLICTS OF INTEREST AND VIOLATIONS OF LAW 9.0 Conflict of Interest Laws. Consultant is subject to all federal, state and local conflict of interest laws, regulations, and policies applicable to public contracts and procurement practices including, but not limited to, California Government Code sections 1090, et. seq. pg. 16 Consultant Services Agreement _______________________ 16.d Packet Pg. 597 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) and 81000, et. seq. City may determine that Consultant must complete one or more statements of economic interest disclosing relevant financial interests. Upon City’s request, Consultant shall submit the necessary documents to City. 9.1 Consultant’s Responsibility for Employees and Agents. Consultant is required to establish and make known to its employees and agents appropriate safeguards to prohibit employees from using their positions for a purpose that is, or that gives the appearance of being, motivated by the desire for private gain for themselves or others, particularly those with whom they have family, business or other relationships. 9.2 Consultant’s Financial or Organizational Interests. In connection with any task, Consultant shall not recommend or specify any product, supplier, or Consultant with whom Consultant has a direct or indirect financial or organizational interest or relationship that would violate conflict of interest laws, regulations, or policies. 9.3 Certification of Non-Collusion. Consultant certifies that: (1) Consultant’s bid or proposal was not made in the interest of or on behalf of any person, firm, or corporation not identified; (2) Consultant did not directly or indirectly induce or solicit any other bidder or proposer to put in a sham bid or proposal; (3) Consultant did not directly or indirectly induce or solicit any other person, firm or corporation to refrain from bidding; and (4) Consultant did not seek by collusion to secure any advantage over the other bidders or proposers. 9.4 Hiring City Employees. This Agreement shall be unilaterally and immediately terminated by City if Consultant employs an individual who within the twelve (12) months immediately preceding such employment did in his/her capacity as a City officer or employee participate in negotiations with or otherwise have an influence on the selection of Consultant. ARTICLE X DISPUTE RESOLUTION 10.0 Mediation. If a dispute arises out of or relates to this Agreement and cannot be settled through normal Agreement negotiations, Consultant and City shall use mandatory non-binding mediation before having recourse in a court of law. 10.1 Selection of Mediator. A single mediator that is acceptable to both parties shall be used to mediate the dispute. The mediator will be knowledgeable in the subject matter of this Agreement, if possible. 10.2 Expenses. The expenses of witnesses for either side shall be paid by the party producing such witnesses. All other expenses of the mediation, including required traveling and other expenses of the mediator, and the cost of any proofs or expert advice produced at the direct request of the mediator, shall be borne equally by the parties, unless they agree otherwise. 10.3 Conduct of Mediation Sessions. Mediation hearings will be conducted in an informal manner and discovery will not be allowed. The discussions, statements, writings and pg. 17 Consultant Services Agreement _______________________ 16.d Packet Pg. 598 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) admissions will be confidential to the proceedings (pursuant to California Evidence Code sections 1115 through 1128) and will not be used for any other purpose unless otherwise agreed by the parties in writing. The parties may agree to exchange any information they deem necessary. Both parties shall have a representative attend the mediation who is authorized to settle the dispute, though City's recommendation of settlement may be subject to the approval of the Mayor and City Council. Either party may have attorneys, witnesses or experts present. 10.4 Mediation Results. Any agreements resulting from mediation shall be memorialized in writing. The results of the mediation shall not be final or binding unless otherwise agreed to in writing by the parties. Mediators shall not be subject to any subpoena or liability, and their actions shall not be subject to discovery. ARTICLE XI MANDATORY ASSISTANCE 11.0 Mandatory Assistance. If a third party dispute or litigation, or both, arises out of, or relates in any way to the services provided to the City under the Agreement, Consultant , its agents, officers, and employees agree to assist in resolving the dispute or litigation upon City’s request. Consultant’s assistance includes, but is not limited to, providing professional consultations, attending mediations, arbitrations, depositions, trials or any event related to the dispute resolution and/or litigation. 11.1 Compensation for Mandatory Assistance. City will compensate Consultant for fees incurred for providing Mandatory Assistance. If, however, the fees incurred for the Mandatory Assistance are determined, through resolution of the third party dispute or litigation, or both, to be attributable in whole, or in part, to the acts or omissions of Consultant, its agents, officers, and employees, Consultant shall reimburse City for all fees paid to Consultant, its agents, officers, and employees for Mandatory Assistance. 11.2 Attorneys’ Fees Related to Mandatory Assistance. In providing City with dispute or litigation assistance, Consultant or its agents, officers, and employees may incur expenses and/or costs. Consultant agrees that any attorney fees it may incur as a result of assistance provided under Section 11.0 are not reimbursable. ARTICLE XII MISCELLANEOUS PROVISIONS 12.0 Headings. All headings are for convenience only and shall not affect the interpretation of this Agreement. 12.1 Non-Assignment. Consultant may not assign the obligations under this Agreement, whether by express assignment or by sale of the company, nor any monies due or to become due under this Agreement, without City’s prior written approval. Any assignment in violation of this paragraph shall constitute a default and is grounds for termination of this Agreement at the City’s sole discretion. In no event shall any putative assignment create a contractual relationship between City and any putative assignee. pg. 18 Consultant Services Agreement _______________________ 16.d Packet Pg. 599 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 12.2 Independent Contractors. Consultant and any subcontractors employed by Consultant are independent contractors and not agents of City. Any provisions of this Agreement that may appear to give City any right to direct Consultant concerning the details of performing the services, or to exercise any control over performance of the Agreement, shall mean only that Consultant shall follow the direction of City concerning the end results of the performance. 12.3 Subcontractors. All persons assigned to perform any work related to this Agreement, including any subcontractors, are deemed to be employees of Consultant, and Consultant shall be directly responsible for their work. 12.4 Covenants and Conditions. All provisions of this Agreement expressed as either covenants or conditions on the part of City or Consultant shall be deemed to be both covenants and conditions. 12.5 Compliance with Controlling Law. Consultant shall comply with all applicable local, state, and federal laws, regulations, and policies. Consultant’s act or omission in violation of applicable local, state, and federal laws, regulations, and policies is grounds for Agreement termination. In addition to all other remedies or damages allowed by law, Consultant is liable to City for all damages, including costs for substitute performance, sustained as a result of the violation. In addition, Consultant may be subject to suspension, debarment, or both. 12.6 Governing Law. The Agreement shall be deemed to be made under, construed in accordance with, and governed by the laws of the State of California without regard to the conflicts or choice of law provisions thereof. 12.7 Venue. The venue for any suit concerning solicitations or the Agreement, the interpretation of application of any of its terms and conditions, or any related disputes shall be in the Superior Court for the State of California, County of San Bernardino. 12.8 Successors in Interest. This Agreement and all rights and obligations created by this Agreement shall be in force and effect whether or not any parties to the Agreement have been succeeded by another entity, and all rights and obligations created by this Agreement shall be vested and binding on any party’s successor in interest. 12.9 No Waiver. No failure of either City or Consultant to insist upon the strict performance by the other of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this Agreement, shall constitute a waiver of any such breach of such covenant, term or condition. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall continue in full force and effect without respect to any existing or subsequent breach. 12.10 Severability. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid, or illegal. pg. 19 Consultant Services Agreement _______________________ 16.d Packet Pg. 600 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 12.11 Drafting Ambiguities. The parties acknowledge that they have the right to be advised by legal counsel with respect to the negotiations, terms and conditions of this Agreement, and the decision of whether to seek advice of legal counsel with respect to this Agreement is the sole responsibility of each party. This Agreement shall not be construed in favor of or against either party by reason of the extent to which each party participated in the drafting of the Agreement. 12.12 Amendments. Neither this Agreement nor any provision hereof may be changed, modified, amended or waived except by a written agreement executed by duly authorized representatives of City and Consultant. Any alleged oral amendments have no force or effect. 12.13 Conflicts between Terms. If this Agreement conflicts with an applicable local, state, or federal law, regulation, or court order, the applicable local, state, or federal law, regulation, or court order shall control. Varying degrees of stringency among the main body of this Agreement, the exhibits or attachments, and laws, regulations, or orders are not deemed conflicts, and the most stringent requirement shall control. Each party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement. 12.14 Survival of Obligations. All representations, indemnifications, warranties, and guarantees made in, required by, or given in accordance with this Agreement, as well as all continuing obligations indicated in this Agreement, shall survive, completion and acceptance of performance and termination, expiration or completion of the Agreement. 12.15 Confidentiality of Services. All services performed by Consultant, and any subcontractors if applicable, including but not limited to all drafts, data, information, correspondence, proposals, reports of any nature, estimates compiled or composed by Consultant, are for the sole use of City, its agents, and employees. Neither the documents nor their contents shall be released by Consultant or any subcontractor to any third party without the prior written consent of City. This provision does not apply to information that: (1) was publicly known, or otherwise known to Consultant, at the time it was disclosed to Consultant by City; (2) subsequently becomes publicly known through no act or omission of Consultant; or (3) otherwise becomes known to Consultant other than through disclosure by City. 12.16 Insolvency. If Consultant enters into proceedings relating to bankruptcy, whether voluntary or involuntary, Consultant agrees to furnish, by certified mail or electronic commerce method authorized by the Agreement, written notification of the bankruptcy to the City. This notification shall be furnished within five (5) days of the initiation of the proceedings relating to bankruptcy filing. This notification shall include the date on which the bankruptcy petition was filed, the identity of the court in which the bankruptcy petition was filed, and a listing of City Agreements against which final payment has not been made. This obligation remains in effect until final payment is made under this Agreement. 12.17 No Third Party Beneficiaries. Except as may be specifically set forth in this Agreement, none of the provisions of this Agreement are intended to benefit any third party pg. 20 Consultant Services Agreement _______________________ 16.d Packet Pg. 601 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) not specifically referenced herein. No party other than City and Consultant shall have the right to enforce any of the provisions of this Agreement. 12.18 Actions of City in its Governmental Capacity. Nothing in this Agreement shall be interpreted as limiting the rights and obligations of City in its governmental or regulatory capacity. 12.19 Counterparts. This Agreement may be executed in counterparts, which when taken together shall constitute a single signed original as though all Parties had executed the same page. [Signature Page Follows] pg. 21 Consultant Services Agreement _______________________ 16.d Packet Pg. 602 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) IN WITNESS WHEREOF, this Agreement is executed by City and Consultant acting by and through their authorized officers. CITY OF SAN BERNARDINO: CONSULTANT Date: _____ / _____ / 2018 Date: _____ / _____ / 2018 _________________________________ By: ________________________________ Andrea M. Miller, City Manager Its: ________________________________ APPROVED AS TO FORM: Gary D. Saenz, City Attorney By: ______________________________ Signature Page Consultant Services Agreement _____________________ 16.d Packet Pg. 603 Attachment: PW.40th Street Widening ROW.EXHIBIT A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 604 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 605 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 606 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 607 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 608 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition 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16.e Packet Pg. 654 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 655 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 656 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 657 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 658 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 659 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 660 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 661 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 662 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 663 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 16.e Packet Pg. 664 Attachment: PW.40th Street Widening ROW.ATTACH A (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) REVISED NOT-TO-EXCEED FEE PROPOSAL RESPONSE REQUEST FOR PROPOSAL CITY OF SAN BERNARDINO DEPARTMENT OF PUBLIC WORKS JULY 27, 2018 RIGHT-OF-WAY ACQUISITION SERVICES FOR THE WIDENING OF FORTIETH STREET BETWEEN JOHNSON STREET AND ELECTRIC AVENUE (SS04-014) COPY 1 OF 1 16.f Packet Pg. 665 Attachment: PW.40th Street Widening ROW.ATTACH B (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 1 FEE SCHEDULE Mark MendozaDan AkinsAmy BetonteTom BoyleBrett BrownJennifer PryorSubconsultantProject DirectorProject ManagerQA/QC LeadPrincipal Acquisition AgentSenior Title AgentProject CoordinatorFeesTotals$195 $150$135$115$95$75Project ManagementKick off meeting w/City4441,840$ Prepare Acquisition Plan & Schedule24840$ Pre-Condemnation Planning88123,660$ Project Meetings & Conf calls568,400$ Project Reporting, quality & schedule control16241200008,340$ Title ServicesPreliminary Title Reports (Commonwealth)11,000$ 11,000$ PTR review00020001,900$ Appraisal ServicesAppraisal Reports (John Penner, MAI)000048,400$ 48,400$ Review of Appraisals (Internal Review)10406,100$ Obtain Just Compensation2300$ Acquisition ServicesPrepare Documents & Offer Packages010100002,500$ Presentation of Offers and Negotiations0022500025,875$ Settlement Discussions 24192$ Escrow Coordination403,000$ Condemnation Prep (Assume 2 properties)2800401,680$ File Close out8162,280$ Total Hours20132502912060 126,307$ Other Direct Costs (Postage, copies, etc.) 600$ 126,907$ 3,807$ 123,100$ Assumptions:TOTAL NOT TO EXCEED3% discount4. Additional services such as, but not limited to, trial valuation reports, litigation guarantees, appraisals of excess property, will be billed on a time and material basis consistent with the rate schedule in the above table and comprehensive hourly rate schedule attached.1. Relocation Plan to be included in scope of services.2. Three (3) residential relocations to be included in scope of services.3. Additional residential relocations, if required, will be at a fee of $2,900 each.REVISED GRAND TOTAL16.f Packet Pg. 666 Attachment: PW.40th Street Widening ROW.ATTACH B (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) PARAGON | 2018 SCHEDULE OF FEES TERMS OF PAYMENT Net 30 days. Invoices will be submitted monthly. All rates are effective as of January 1, 2018. Rates may be revised annually on January 1 to reflect increases in the cost of living and current business conditions. Overtime for applicable labor classifications will be charged at 1.5 times the hourly rate in accordance with California law. CLASSIFICATION HOURLY RATE PROJECT DIRECTOR $195 PROJECT MANAGER $150 PRINCIPAL ACQUISITION AGENT $115 SENIOR ACQUISITION AGENT $95 ACQUISITION AGENT $85 PRINCIPAL RELOCATION AGENT $115 SENIOR RELOCATION AGENT $95 RELOCATION AGENT $85 TITLE MANAGER $135 TITLE SUPERVISOR $120 SENIOR TITLE AGENT $95 TITLE AGENT $85 PROJECT CONTROLS SPECIALIST $85 PROJECT OR ESCROW COORDINATOR $75 QA/QC LEAD $135 SENIOR RIGHT OF WAY ENGINEER/GIS SPECIALIST $125 ASSOCIATE RIGHT OF WAY ENGINEER/GIS SPECIALIST $95 RIGHT OF WAY ENGINEERING TECHNICIAN $75 ADMINISTRATIVE SUPPORT $65 OFFICE CLERK $50 IT SUPPORT $125 DEPOSITIONS AND COURT TESTIMONY $250 16.f Packet Pg. 667 Attachment: PW.40th Street Widening ROW.ATTACH B (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) CLASSIFICATION HOURLY RATE DEPOSITIONS AND COURT TESTIMONY $ 250 CONDEMNATION SUPPORT $ 135 MAI APPRAISER COURT TESTIMONY $ 400 MAI APPRAISER COURT PREPARATION $ 300 STAFF APPRAISER COURT PREPARATION $ 175 ANALYSTS COURT PREPARATION $ 125 CLERICAL COURT PREPARATION $ 75 PARAGON | CONDEMNATION FEE SCHEDULE DIRECT CHARGES COPIES $0.15 each POSTAGE/FEDEX Cost REAL ESTATE DATA SERVICES Cost + 15%TELEPHONE/FAX Cost CLASSIFICATION HOURLY RATE DEPOSITIONS AND COURT TESTIMONY $250 CONDEMNATION SUPPORT $135 MAI APPRAISER COURT TESTIMONY $400 MAI APPRAISER COURT PREPARATION $300 STAFF APPRAISER COURT PREPARATION $175 ANALYSTS COURT PREPARATION $125 CLERICAL COURT PREPARATION $75 DIRECT CHARGES COPIES $0.15 EA REAL ESTATE DATA SERVICES COST + 15% POSTAGE/FEDEX COST TELEPHONE/FAX COST 16.f Packet Pg. 668 Attachment: PW.40th Street Widening ROW.ATTACH B (5723 : Right-Of-Way Acquisition Services Agreement for the Widening of 40Th Street) 17.a Packet Pg. 669 Attachment: PW.ERSC 40th St Widening Third Amend - Report (5724 : Third Amendment to the Engineering Resources of Southern California, Discussion The undergrounding and right-of-way acquisition phases were started in July 2018. Although the PS&E phase of the project is nearly completed, it is important to keep our design consultant, ERSC, under contract since changes to the plans may be necessary in order to facilitate the undergrounding and right-of-way acquisition. The undergrounding and right-of-way phases are expected to be completed in late 2019; therefore, the contract with ERSC, which expired on June 30, 2018, needs to be extended to December 31, 2019 so the firm will be available to provide support for the undergrounding and right-of-way phases. Fiscal Impact A total of $1,025,000 has been allocated in the FY2018/19 budget in Account No. 264- 160-7160-5504 for ROW acquisition for this project. The budget is proposed to be used as follows: ERSC support during ROW acquisition (Third Amendment) $ 25,000 Appraisal and acquisition consultant support 123,100 Acquisition of ROW 876,900 $1,025,000 We anticipate that most of the right-of-way can be acquired this fiscal year. The cost of this project is eligible for partial reimbursement under the Measure I Valley Arterial Sub-Program. Under the program, the San Bernardino County Transportation Authority (SBCTA) will reimburse 67.6% of the cost of the project leaving the City’s share as 32.4%. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2018-249 authorizing and directing the City Manager to execute the Third Amendment to the Consultant Services Agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design services for the widening of 40th Street from Johnson Street to Electric Avenue (SS04-014). Attachments Attachment 1 Vicinity Map Attachment 2 Resolution; Exhibit A - Third Amendment 8/31/2018 9:30 AM 17.a Packet Pg. 670 Attachment: PW.ERSC 40th St Widening Third Amend - Report (5724 : Third Amendment to the Engineering Resources of Southern California, Ward: 4 Synopsis of previous actions: 01/09/17 Resolution 2017-005 adopted approving Agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design services for the widening of 40th Street from Johnson Street to Electric Avenue (SS04-014). 07/19/17 Resolution 2017-131 adopted approving Amendment No 1 to an Agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design services for the widening of 40th Street from Johnson Street to Electric Avenue (SS04-014). 10/18/17 Resolution No. 2017-202 adopted approving Amendment No 2 to an Agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design services for the widening of 40th Street from Johnson Street to Electric Avenue (SS04-014). 03/21/18 Resolution No. 2018-75 approved adopting a Mitigated Negative Declaration (MND), adopting a Mitigation Monitoring and Reporting Program (MMRP), and authorizing the Director of Community Development or designee to file a Notice of Determination (NOD) with the Clerk of the Board of Supervisors of San Bernardino County for the widening of 40th Street between Johnson Street and Electric Avenue (SS04-014). 8/31/2018 9:30 AM 17.a Packet Pg. 671 Attachment: PW.ERSC 40th St Widening Third Amend - Report (5724 : Third Amendment to the Engineering Resources of Southern California, 17.b Packet Pg. 672 Attachment: PW.ERSC 40th St Widening Third Amend - Attachment 1-Vicinity Map (5724 : Third Amendment to the Engineering Resources of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2018-249 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE THE THIRD AMENDMENT TO THE CONSUTANT SERVICE AGREEMENT WITH ENGINEERING RESOURCES OF SOUTHERN CALIFORNIA, INC. TO PROVIDE ENVIRONMENTAL AND CIVIL ENGINEERING DESIGN SERVICES FOR THE WIDENING OF 40TH STREET FROM JOHNSON STREET TO ELECTRIC AVENUE (SS04-014) BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager or designee is hereby authorized and directed to execute the Third Amendment to the Consultant Service Agreement with Engineering Resources of Southern California, Inc., a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference. SECTION 2. The Director of Finance or designee is hereby authorized and directed to amend the FY 18/19 Budget by transferring $25,000 from unallocated Fund 264 monies to Account No. 264-160-7160-5504 “40th Street Widening from Johnson Street to Electric Avenue” and to increase the Purchase Order to Engineering Resources of Southern California, Inc. in the amount of $25,000. SECTION 3. The authorization to execute the above-referenced Amendment is rescinded, if it is not executed and returned to the Office of the City Clerk within ninety (90) days of the passage of this Resolution. /// /// 1 17.c Packet Pg. 673 Attachment: PW.ERSC 40th St Widening Third Amend - Attachment 2-Resolution (5724 : Third Amendment to the Engineering Resources of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE THE THIRD AMENDMENT TO THE CONSUTANT SERVICE AGREEMENT WITH ENGINEERING RESOURCES OF SOUTHERN CALIFORNIA, INC. TO PROVIDE ENVIRONMENTAL AND CIVIL ENGINEERING DESIGN SERVICES FOR THE WIDENING OF 40TH STREET FROM JOHNSON STREET TO ELECTRIC AVENUE (SS04-014) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a ______________________________ meeting thereof, held on the _____ day of ________________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, CMC, City Clerk The foregoing Resolution is hereby approved this _____ day of ________________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: 2 17.c Packet Pg. 674 Attachment: PW.ERSC 40th St Widening Third Amend - Attachment 2-Resolution (5724 : Third Amendment to the Engineering Resources of Exhibit “A” THIRD AMENDMENT TO AGREEMENT FOR PROFESSIONAL SERVICES THIS THIRD AMENDMENT TO AGREEMENT FOR PROFESSIONAL SERVICES between Engineering Resources of Southern California, Inc. (“Consultant”) and the City of San Bernardino (“City) is entered into this _____ day of __________, 2018. WITNESSETH: A. WHEREAS, on January 6, 2017, Resolution 2017-005 was adopted approving an Agreement with Consultant to provide environmental and civil engineering design services for the widening of 40th Street from Johnson Street to Electric Avenue (SS04- 014), hereinafter referred to as “Project”; B. WHEREAS, on July 19, 2017, Resolution 2017-131 was adopted approving amendment No. 1 to the Agreement with Consultant to provide environmental and civil engineering design services for the Project; C. WHEREAS, on October 18, 2017, Resolution No. 2017-202 was adopted approving the Second Amendment to the Agreement with Consultant to provide environmental and civil engineering design services for the Project; D. WHEREAS, on March 21, 2018, Resolution No. 2018-75 approved adopting a Mitigated Negative Declaration (MND), adopting a Mitigation Monitoring and Reporting Program (MMRP), and authorizing the Director of Community Development or designee to file a Notice of Determination (NOD) with the Clerk of the Board of Supervisors of San Bernardino County for the Project; E. WHEREAS, said Agreement for Professional Services with Consultant expired on June 30, 2018; F. WHEREAS, the services of the Consultant continue to be needed to support the underground and right-of-way acquisition phases of the project; G. WHEREAS, the Consultant concurs with a time extension to December 31, 2019. 17.d Packet Pg. 675 Attachment: PW.ERSC 40th St Widening Third Amend - Attachment 3-Exhibit A Amendment (5724 : Third Amendment to the Engineering Exhibit “A” Third Amendment to Agreement for Professional Services – Engineering Resources of Southern California, Inc.. Page 2 of 3 NOW THEREFORE, the parties hereto agree as follows: 1. Section 2.1 “Compensation” of The Professional Services Agreement is amended as follows: Original Contract Amount $173,805.00 Potholing (5 potholes at $950.00 each) $4,750.00 First Amendment $8,350.00 Second Amendment $33,370.00 Third Amendment (This Request) $25,000.00 Revised Contract Amount $245,275.00 2. Section 4.1 “Term” of said Agreement for Professional Services is hereby amended to extend the term of this Agreement to December 31, 2019, unless terminated sooner as provided herein. 3. All other terms and conditions of said Agreement for Professional Services as approved by Resolution No. 2017-005, Resolution No. 2017-131, Resolution No. 2017-202 and Resolution No. 2018-075 shall remain unchanged. /// /// 17.d Packet Pg. 676 Attachment: PW.ERSC 40th St Widening Third Amend - Attachment 3-Exhibit A Amendment (5724 : Third Amendment to the Engineering Exhibit “A” Third Amendment to Agreement for Professional Services – Engineering Resources of Southern California, Inc.. Page 3 of 3 THIRD AMENDMENT TO AGREEMENT FOR PROFESSIONAL SERVICES IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the date shown below. Engineering Resources of Southern California, Inc. Date: _______________ by: __________________________________ Signature __________________________________ Print Name/Title CITY OF SAN BERNARDINO Date: _______________ by: __________________________________ Andrea M. Miller City Manager Approved as to form: Gary D. Saenz City Attorney By: _________________________ ATTEST: __________________________ Georgeann Hanna, City Clerk 17.d Packet Pg. 677 Attachment: PW.ERSC 40th St Widening Third Amend - Attachment 3-Exhibit A Amendment (5724 : Third Amendment to the Engineering 18.a Packet Pg. 678 Attachment: HR.Basic Compensation Plan for SBPD- Report (5725 : Basic Compensation Plan for San Bernardino Police Department) P-3 Sergeant $8,829.00 $9,512.00 $10,195.00 $10,878.00 $11,562.00 P-4 Lieutenant $14,244.00 P-5 Captain $16,764.00 P-6 Assistant Chief $18,235.00 P-7 Chief $20,173.00 2018-19 Goals and Objectives Updates to the Police Safety classifications salaries of the City of San Bernardino effective August 1, 2018 aligns with Goal 5. Improve Government Operations by ensuring that employees are compensated fairly. Fiscal Impact No fiscal impact to the City. The FY 2018/19 Adopted Budget reflects a 3.5% salary increase. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2018-250, establishing salaries for the Police Department Ranges P-1 (Police Officer), P-2 (Detective/Corporal), P-3 (Sergeant), P-4 (Lieutenant), P-5 (Captain) P-6 (Assistant Chief), P-7 (Chief), and Law Enforcement Trainee effective August 1, 2018. Attachments Attachment 1 – Resolution 8/31/2018 9:28 AM 18.a Packet Pg. 679 Attachment: HR.Basic Compensation Plan for SBPD- Report (5725 : Basic Compensation Plan for San Bernardino Police Department) RESOLUTION NO. 2018-250 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING SALARIES FOR THE POLICE DEPARTMENT RANGES P-1 (POLICE OFFICER), P-2 (DETECTIVE/CORPORAL), P- 3 (SERGEANT), P-4 (LIEUTENANT), P-5 (CAPTAIN), P-6 (ASSISTANT CHIEF), P-7 (CHIEF), AND LAW ENFORCEMENT TRAINEE EFFECTIVE AUGUST 1, 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: Resolution No. 6429, Section Three, is hereby amended to read as follows: POLICE DEPARTMENT First 6 Following Third Fourth Fifth & Sub- JOB Months 18 Months Year Year sequent Yrs TITLE Service Service Service Service Service Effective August 1, 2018: Police Officer $6,719.00 $7,282.00 $7,846.00 $8,409.00 $8,973.00 P-1 Detective/Corporal $7,802.00 $8,409.00 $9,017.00 $9,624.00 $10,232.00 P-2 Sergeant $8,829.00 $9,512.00 $10,195.00 $10,878.00 $11,562.00 P-3 Lieutenant -- -- -- -- $14,244.00 P-4 Captain -- -- -- -- $16,764.00 P-5 Assistant Chief -- -- -- -- $18,235.00 P-6 Chief -- -- -- -- $20,173.00 P-7 /// /// 1 18.b Packet Pg. 680 Attachment: HR.Basic Compensation Plan for SBPD- Attachment 1- Reso (5725 : Basic Compensation Plan for San Bernardino Police RESOLUTION NO. 2018-250 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING SALARIES FOR THE POLICE DEPARTMENT RANGES P-1 (POLICE OFFICER), P-2 (DETECTIVE/CORPORAL), P- 3 (SERGEANT), P-4 (LIEUTENANT), P-5 (CAPTAIN), P-6 (ASSISTANT CHIEF), P-7 (CHIEF), AND LAW ENFORCEMENT TRAINEE EFFECTIVE AUGUST 1, 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a meeting thereof, held on the day of , 2018, by the following vote, to wit: COUNCILMEMBERS: AYES NAYES ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, City Clerk The foregoing Resolution is hereby approved this __________ day of __________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: ____________________________________ 2 18.b Packet Pg. 681 Attachment: HR.Basic Compensation Plan for SBPD- Attachment 1- Reso (5725 : Basic Compensation Plan for San Bernardino Police RESOLUTION NO. 2018-250 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING SALARIES FOR THE POLICE DEPARTMENT RANGES P-1 (POLICE OFFICER), P-2 (DETECTIVE/CORPORAL), P- 3 (SERGEANT), P-4 (LIEUTENANT), P-5 (CAPTAIN), P-6 (ASSISTANT CHIEF), P-7 (CHIEF), AND LAW ENFORCEMENT TRAINEE EFFECTIVE AUGUST 1, 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 18.b Packet Pg. 682 Attachment: HR.Basic Compensation Plan for SBPD- Attachment 1- Reso (5725 : Basic Compensation Plan for San Bernardino Police 19.a Packet Pg. 683 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. REPORT (5727 : MOU with the cooperation among all entities that provide services to the county’s homeless. In addition, the Board created the Office of Homeless Services (OHS), administered by CDHA, to provide administrative support for the newly formed Partnership. In February 2013, OHS accepted a grant agreement from HUD to administer and maintain the HMIS for the County of San Bernardino. In order for the City to access the HMIS database an MOU is required between CDHA and the City of San Bernardino (City) since the two agencies will be collaborating to address the multidimensional problem of homelessness locally. Once the MOU is approved and in place, the City would highly benefit from obtaining client-level, system- wide information over time on the characteristics and service needs of men, women and children experiencing homelessness in the City. Discussion The City utilizes the HMIS data in preparation of various reports, but most importantly in the preparation of the Consolidated Annual Performance and Evaluation Report (CAPER), which the City will prepare and submit to HUD for approval in September. The CHDA has informed the City that it plans to revise language in the MOU in response to input from a number of agencies, including the City. However, the revisions of the MOU will take two to four months to complete. Consequently, staff is recommending that City Council approve the current MOU and when the revisions are completed and if the language is not substantive, that the City Manager or her designee be authorized to execute a new MOU, based on review and consultation with the City Attorney. However, should the changes to the new MOU be substantive, the MOU would be presented to the City Council for approval. The MOU is effective upon date of execution through October 31, 2021. The MOU between the City and OHS delineates the roles and responsibilities of the City and OHS regarding HMIS participation to capture information about the persons served. The City will ensure compliance with all applicable federal and state laws regarding protection of client privacy and confidentiality regulations, and the HMIS Policies and Procedures pertaining to client confidentiality. • City staff will attend monthly Users, Agency Administration and Reports Trainings as provided by OHS. • The City will ensure compliance with all the HUD required data elements and will ensure compliance with HUD Technical Standards specified in the HMIS Policies and Procedures. OHS will ensure compliance with all applicable federal and state laws and regulations regarding the protection of client privacy and confidentiality of client information. OHS will provide the following: 8/31/2018 9:15 AM 19.a Packet Pg. 684 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. REPORT (5727 : MOU with the • OHS will provide the City with a matrix clearly outlining the HUD required data elements that must be included in the data file to be migrated to the OHS HMIS system (if applicable). • OHS will provide User ID and Passwords to Users before being granted access to HMIS. • OHS will provide monthly Users, Agency Administration and Report Training. • OHS will create monthly reports as needed and submit them as an e-mail attachment for review. • OHS will provide utilization reports to participating agencies on a regular basis to include data quality and tracking. The Quality of Life team will be able to utilize the system to refer homeless persons they encounter in their daily work to agencies that may assist in providing the appropriate services. 2018-19 Goals and Objectives The proposed MOU with the County of San Bernardino Community Development and Housing Agency for HMIS meets Mayor and City Council Goal No. 7: Pursue City Goals and Objectives by Working with Other Agencies. Fiscal Impact No fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the MOU allowing City access to the HMIS. Attachments Attachment 1 Memorandum of Understanding between County of San Bernardino Community Development and Housing Agency Office of Homeless Services and City of San Bernardino for Homeless Management Information System Ward: Citywide Synopsis of Previous Council Actions: Not Applicable 8/31/2018 9:15 AM 19.a Packet Pg. 685 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. REPORT (5727 : MOU with the Page 1 of 7 MEMORANDUM OF UNDERSTANDING Between County of San Bernardino Acting By and Through County of San Bernardino Community Development and Housing Agency Office of Homeless Services And City of San Bernardino For Homeless Management Information System Date of Execution through October 31, 2021 WHEREAS, the County of San Bernardino (County) Community Development and Housing Agency (CDHA) Office of Homeless Services (OHS) is responsible for coordinating countywide efforts to end and prevent homelessness in San Bernardino County; and, WHEREAS, the United States Congress, in accepting Conference Report 106-988m indicated that “local jurisdictions should be collecting an array of data on homelessness in order to prevent duplicate counting of homeless persons and to analyze their patterns of use of assistance, including how they enter and exit the homeless assistance system and the effectiveness of the systems”; and, WHEREAS, OHS has been allocated funds by the United States Department of Housing and Urban Development (HUD) to provide data collection services regarding the individuals experiencing homelessness in the County of San Bernardino; and, WHEREAS, OHS is responsible for administering and maintaining the HUD mandated county-wide Homeless Management Information System (HMIS), a web-enabled database used by homeless services providers to capture information about the San Bernardino County persons they serve; and WHEREAS, OHS is responsible for ensuring that all homeless services providers within the County of San Bernardino adhere to HUD and local policy and procedures regarding the utilization of the HUD mandated HMIS; and, WHEREAS, OHS is the system host and provides the personnel and administrative support to operate HMIS, and has the responsibility to establish, support and manage HMIS in a manner that will meet HUD’s standards for minimum data quality, privacy, security and other requirements for agencies participating in HMIS; and, WHEREAS, City of San Bernardino, hereafter referred to as “Agency,” has been awarded, allocated funds, or seeks to provide homeless program services within the County of San Bernardino; NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants and obligations contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the County, acting by and through OHS, and Agency agree to the following terms and conditions: 19.b Packet Pg. 686 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. Attachment (5727 : MOU with the Page 2 of 7 TABLE OF CONTENTS I. BACKGROUND .................................................................................................................................. 3 II. OHS RESPONSIBILITIES................................................................................................................... 3 III. AGENCY RESPONSIBILITIES ........................................................................................................... 3 IV. MUTUAL RESPONSIBILITIES ............................................................................................................ 4 V. REQUIRED DATA COLLECTION ELEMENTS ................................................................................... 4 VI. USAGE OF DATA ............................................................................................................................... 5 VII. CONFIDENTIALITY AND INFORMED CONSENT .............................................................................. 5 VIII. POSTINGS ......................................................................................................................................... 5 IX. RIGHTS .............................................................................................................................................. 5 X. COPYRIGHT ...................................................................................................................................... 5 XI. RIGHT TO MONITOR ......................................................................................................................... 5 XII. TERM ................................................................................................................................................. 6 XIII. EARLY TERMINATION ....................................................................................................................... 6 XIV. GENERAL PROVISIONS .................................................................................................................... 6 XV. CONCLUSION .................................................................................................................................... 7 19.b Packet Pg. 687 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. Attachment (5727 : MOU with the Page 3 of 7 I. BACKGROUND In September of 2007, the San Bernardino County Board of Supervisors (Board) approved the formation of the San Bernardino County Homeless Partnership (Partnership) to provide leadership in creating a stronger countywide network of service delivery to homeless individuals, homeless families, and those at risk of becoming homeless through facilitating better communication, planning coordination, and cooperation among all entities that provide services to the county’s homeless. In addition, the Board created the OHS, originally under Human Services and the Department of Behavioral Health, now administered by the Community Development and Housing Agency, to provide administrative support for the newly formed Partnership. To address the multidimensional problem of homelessness locally and nationally, HUD, through a Congressional directive, required all Continuum of Cares (CoC) to implement an expanded HMIS to address the problem more effectively. An HMIS is a computerized data collection system used by homeless services providers to capture information about the persons they serve. This data collection system tracks collaborative agencies’ services that are provided throughout each CoC to homeless individuals and families. Services tracked include emergency, transitional, and permanent housing bed usage, employment, veteran’s status, referrals to health and human service providers, legal aid or other relevant supportive service agencies. In February 2013, OHS accepted a grant agreement from HUD to administer and maintain the HMIS for the County of San Bernardino. This MOU between OHS and the Agency delineates the roles and responsibilities of OHS and the Agency regarding HMIS participation to capture information about the San Bernardino County persons they serve. II. OHS RESPONSIBILITIES OHS shall: A. Ensure compliance with all applicable federal and state laws and regulations regarding the protection of client privacy and confidentiality of client information. B. Provide the Agency with a matrix clearly outlining the HUD required data elements that must be included in the data file to be migrated to the OHS HMIS system; (if applicable). C. Provide User ID and Passwords to Users before being granted access to HMIS. D. Provide monthly User’s, Agency Administration and Report Training; and other trainings deemed necessary. E. Conduct regular on-site monitoring visits to ensure compliance with HUD and HMIS Policies and Procedures. F. Provide ongoing data and technical support through monthly trainings, one-on-one trainings as well as Webinars via Go-To-Meetings. G. Create monthly reports as needed and submit them as an e-mail attachment for review. H. Provide utilization reports to participating agencies on a regular basis to include data quality and tracking. III. AGENCY RESPONSIBILITIES Agency shall: A. Ensure compliance with all applicable federal and state laws regarding protection of client privacy and confidentiality regulations, and the HMIS Policies and Procedures pertaining to client confidentiality, user conduct, security and the ongoing functionality and stability of services used to support the HMIS. B. Attend monthly User’s, Agency Administration and Reports Trainings as provided by OHS. 19.b Packet Pg. 688 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. Attachment (5727 : MOU with the Page 4 of 7 C. Ensure compliance with all the HUD required data elements. D. Ensure compliance with HUD Technical Standards specified in the HMIS Policies and Procedures. E. Keep Interagency data sharing agreements and Client Consent/Information release forms for all individual client data that is shared to non-custodial agencies where the internal policies of the Agency allows data sharing. F. Ensure compliance and full participation with local CoC CA-609 Coordinated Assessment System written procedures. IV. MUTUAL RESPONSIBILITIES A. OHS and the Agency agree they will establish mutually satisfactory methods for the exchange of such information as may be necessary in order that each party may perform its duties and functions under this agreement; and appropriate procedures to ensure all information is safeguarded from improper disclosure in accordance with applicable State and Federal laws and regulations. B. OHS and the Agency agree they will establish mutually satisfactory methods for problem resolution. V. REQUIRED DATA COLLECTION ELEMENTS It is the responsibility of the Agency to collect data based on the HUD 2017 HMIS Data Standards, Version 1.2, October 2017, unless the Agency has Read Only Access. A. The Universal Data Elements include: Name, Social Security Number, Date of Birth, Ethnicity and Race, Gender, Veteran Status, Disabling Condition, Living Situation, Prior Living Situation, Zip Code of Last Permanent Address, Project Entry Date, Unique Person Identification Number (system generated), Project Exit Date, Destination, Program Identification Number (system generated), Household Identification Number (system generated), Relationship to Head of Household, Client Location, and Length of Time on Street, in an Emergency Shelter (ES) or Safe Haven. B. Project-Specific Data Elements include: HIV/AIDS Mental Health Substance Abuse Domestic Violence Services Received Reasons for Leaving Employment Education Chronic Health Condition Pregnancy Status Veteran’s Information Children’s Education Destination at Exit Non-Cash Benefits Housing Status Income and Source Financial Assistance Provided Supportive Services for Veterans Families only (SSVF) Housing Assessment at Exit [Homeless Prevention Emergency Solutions Grant (ESG) & CoC Funded] Health Insurance Residential Move-In Date (SSVF, Rapid Re-Housing Programs ESG & CoC Funded) Date of Engagement (ESG Street Outreach only) Physical Disability Development Disability Date of Contact (ESG Street Outreach only) Last Permanent Address (SSVF only) General Health Status 19.b Packet Pg. 689 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. Attachment (5727 : MOU with the Page 5 of 7 VI. USAGE OF DATA A. Data Use by OHS For the purposes of system administration, user support, and program compliance, OHS will use the data contained within HMIS for analytical purposes only and will not disseminate client-level data. OHS will release aggregate data contained within HMIS for research and reporting purposes only. B. Data Use by Agency As the guardians entrusted with client personal data, HMIS Users have a moral and a legal obligation to ensure that the data they collect is being gathered, accessed and used appropriately. It is also the responsibility of each user to ensure that client data is only used for the ends for which it was collected, ends that have been made explicit to clients and are consistent with the mission of the Agency and the HMIS to assist families and individuals to resolve their housing crisis. Proper user training, adherence to HMIS Policies and procedures, and a clear understanding of client confidentiality are vital to achieving these goals. Any individual or participating Agency misusing or attempting to misuse HMIS will be denied access to the system. VII. CONFIDENTIALITY AND INFORMED CONSENT The Agency agrees to abide by and uphold all privacy protection standards established by HMIS as well as their respective agency’s privacy procedures. The Agency will also uphold relevant and applicable Federal and California State confidentiality regulations and laws that protect client records, and the Agency will only release confidential client records with written consent by the client, or the client’s guardian, unless otherwise provided for in the regulations or laws. VIII. POSTINGS – Privacy and Mandatory collection notices must be posted at AGENCY The participating Agency must post Privacy and mandatory Collection notices at each intake desk or comparable location. The Privacy and Mandatory Collection notices must be made available in writing at the client’s request. If the Agency maintains a website, a link to the privacy notice must be on the homepage of the Agency’s website. IX. RIGHTS HMIS data from agencies resides in one central database. Data sharing is currently limited to the data within the CoC. The CoC reserves the right at a later date to expand data sharing to include collaborative wide data. X. COPYRIGHT The HMIS is protected by copyright and is not to be copied, except as permitted by law or by contract with owner of the copyright. The Agency’s users’ storage of materials copyrighted by others on the systems or displaying the materials through web pages must comply with copyright laws and guidelines. XI. RIGHT TO MONITOR A. OHS staff or any subdivision or appointee thereof, and the State of California or any subdivision or appointee thereof, including the Inspector General, shall have absolute right to review and audit all records, books, papers, documents, corporate minutes, and other pertinent items as requested, and shall have absolute right to monitor the performance of the Agency in the delivery of services provided under this MOU. Full cooperation shall be given by the Agency in any auditing or monitoring conducted. B. The Agency shall cooperate with OHS in the implementation, monitoring and evaluation of this MOU and comply with any and all reporting requirements established by this MOU. 19.b Packet Pg. 690 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. Attachment (5727 : MOU with the Page 6 of 7 C. The Agency shall provide all reasonable facilities and assistance for the safety and convenience of OHS's representative in the performance of their duties. All inspections and evaluations shall be performed in such a manner as will not unduly delay the work of the Agency. XII. TERM This MOU is effective upon Date of Execution through October 31, 2021, unless terminated earlier in accordance with the provisions of Section XIII of this MOU. XIII. EARLY TERMINATION This MOU may be terminated without cause upon thirty (30) days written notice by either party. The CDHA Deputy Executive Officer, or his/her appointed designee, has the authority to terminate this MOU on behalf of CDHA. The Agency Director, or his/her appointed designee, has the authority to terminate this MOU on behalf of the Agency. XIV. GENERAL PROVISIONS A. No waiver of any of the provisions of the MOU shall be effective unless it is made in writing which refers to provisions so waived and which is executed by the Parties. No course of dealing and no delay or failure of a Party in exercising any right under the MOU shall affect any other or future exercise of that right or any exercise of any other right. A Party shall not be precluded from exercising a right by its having partially exercised that right or its having previously abandoned or discontinued steps to enforce that right. B. Any alterations, variations, modifications, or waivers of provisions of the MOU, unless specifically allowed in the MOU, shall be valid only when they have been reduced to writing, duly signed and approved by the Authorized Representatives of both parties as an amendment to this MOU. No oral understanding or agreement not incorporated herein shall be binding on any of the Parties hereto. C. Indemnification. Agency agrees to indemnify, defend (with counsel reasonably approved by County) and hold harmless the County and its authorized officers, employees, agents and volunteers from any and all claims, actions, losses, damages, and/or liability arising out of this MOU from any cause whatsoever, including the acts, errors or omissions of any person and for any costs or expenses incurred by the County on account of any claim except where such indemnification is prohibited by law. This indemnification provision shall apply regardless of the existence or degree of fault of indemnitees. Agency’s indemnification obligation applies to the County’s “active” as well as “passive” negligence but does not apply to the County’s “sole negligence” or “willful misconduct” within the meaning of Civil Code Section 2782. 19.b Packet Pg. 691 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. Attachment (5727 : MOU with the Page 7 of 7 CITY OF SAN BERNARDINO ECONOMIC AND HOUSING DEPARTMENT COUNTY OF SAN BERNARDINO COMMUNITY DEVELOPMENT AND HOUSING AGENCY, OFFICE OF HOMELESS SERVICES Signature Signature Date: Date: XV. CONCLUSION A. This MOU, consisting of seven (7) pages, is the full and complete document describing services to be rendered by CDHA and Agency for the HUD Homeless Assistance grants. B. The signatures of the Parties affixed to this MOU affirm that they are duly authorized to commit and bind their respective entities to the terms and conditions set forth in this document. Name: Signatory Name Name: Dena Fuentes Title: Title Title: Deputy Executive Officer Address: Street Address Address: 385 North Arrowhead Ave, 3rd Floor City, State Zip San Bernardino, CA 92415-0043 19.b Packet Pg. 692 Attachment: EDH.Agreement with County of San Bernardino Community Development and Housing for HMIS. Attachment (5727 : MOU with the 20.a Packet Pg. 693 Attachment: CM.Agreement with Joe A. Gonsalves Son.STAFF REPORT (5728 : Agreement with Joe A. Gonsalves & Son for Legislative Discussion On May 31, 2018, in keeping with the City’s policy for the use of professional services, the City initiated an open Request for Proposal (RFP) seeking a qualified consultant to assist the City in state legislative advocacy. Seventeen potential firms were identified and notified about the opportunity to submit proposals. The City sought out established State Capital based firm with a successful track record, that had experience working with municipalities on a wide range of legislation proposals and regulatory issues. The City received one qualified proposal from Joe A. Gonsalves & Son which addresses the City’s legislative advocacy needs. The firm has extensive knowledge and expertise in the legislative and regulatory process, representing 54 cities throughout the State of California on a wide range of issues including local government finance. Additionally Joe A. Gonsalves & Son has a proven track record having worked with the City to address the complex issues associated with the dissolution of the redevelopment agency. Joe A. Gonsalves & Son will play a significant role in the administration of the City’s Legislative & Regulatory Platform. The firm’s efforts will help the City’s efforts to be proactive in advocating for more local government funding, while opposing any unfunded state mandates. 2018-2019 Goals and Objectives The proposed authorization for the City Manager to execute an agreement with Joe A. Gonsalves & Son for Legislative Advocacy aligns with Goal No. 7: Pursue City Goals and Objectives by Working with Other Agencies. The agreement will aid staff in working with state and regional governments to ensure San Bernardino receives its fair share of resources, while maintaining close working relationships with governmental agencies. Fiscal Impact The agreement is a three-year agreement with additional two one-year options for a maximum of five-years. The total cost of the three-year agreement is $252,000 with an annual cost of $84,000 or $7,000 monthly. Funding for Legislative Advocacy Services was included in the adopted Fiscal Year 2018/19 budget (001-100-0149–Administrative Services) and funding for the subsequent years will be included in their respective proposed budgets. The City will have the ability to exit the agreement during the established contract period with 30-day notice. Conclusion It is recommended that the Mayor and City Council authorize the City Manager to execute a three-year Professional Services Agreement with the option of two one-year extensions between the City of San Bernardino and Joe A. Gonsalves & Son for Legislative Advocacy Services and issue a purchase order in an amount not to exceed $84,000 for Fiscal Year 2018/19. Attachments Attachment 1 – Legislative Advocacy Services Agreement Attachment 2 – RFP F-18-19 Ward: All Synopsis of Previous Council Actions: None 8/31/2018 9:13 AM 20.a Packet Pg. 694 Attachment: CM.Agreement with Joe A. Gonsalves Son.STAFF REPORT (5728 : Agreement with Joe A. Gonsalves & Son for Legislative PROFESSIONAL SERVICES AGREEMENT LEGISLATIVE ADVOCACY SERVICES This Professional Services Agreement is entered into this __ day of _____ 2018, by and between Joe A. Gonsalves & Son (“VENDOR”) and the City of San Bernardino (“CITY” or “San Bernardino”). Anthony D. Gonsalves, Jason A. Gonsalves, and Paul A. Gonsalves are hereby designated and appointed as the representatives on behalf of VENDOR who shall serve and be compensated as provided by this Agreement. WITNESSETH: WHEREAS, the Mayor and Common Council has determined that it is advantageous and in the best interest of the CITY to contract for Legislative Advocacy Services; and WHEREAS, the Vendor Complied with RFP F-18-19 for Legislative Advocacy Services; And, WHEREAS, this new Agreement supersedes all previous Agreements with the vendor; NOW, THEREFORE, the parties hereto agree as follows: 1. SCOPE OF SERVICES. For the remuneration stipulated in Section 2, VENDOR agrees to assume and perform the following duties and responsibilities: A. Vendor Minimum Work Performance Percentage: VENDOR shall perform with their own organization contract work amounting to not less than 100 percent of the original total contract price, except that any designated “Specialty Items.” VENDOR will be automatically disqualified if any portion of the work will be subcontracted except for later designated special projects, may be performed by subcontract upon approval by the City. The successful vendor will ensure that the City’s policy positions and goals are advanced with City of San Bernardino legislators and with other key decision-makers in the Legislature and Administration. In advising and representing the City, the legislative consultant must apply experience, judgment, strategic expertise, and interpersonal skills to advance the City’s interests in legislative and regulatory forums. B. Proactive Intelligence Gathering & Reporting: Exercise initiative to gather intelligence on emerging issues and trends based on professional expertise and pg. 1 Professional Services Agreement Joe A. Gonsalves & Son 20.b Packet Pg. 695 Attachment: CM.Agreement with Joe A. Gonsalves Son.ATTACHMENT 1 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative knowledge of the City’s interests; and provide timely reports and advance notification to the Office of the City Manager. C. Identification & Review: Proactively and systematically identify legislative and regulatory issues which may impact the City’s current or potential future business interests; and provide information on identified items to the Office of the City Manager and departmental experts for appropriate review. D. Position, Strategy & Action Recommendations: Make recommendations on legislative and regulatory issues of interest to City related to City positions, political and technical strategies, and proactive actions. E. Take Action & Advocate on Behalf of City: Execute position, strategy and action recommendations, and advocate City positions to legislators, the Office of the City Manager, departments, and agencies as directed by the Mayor and City Council. F. Monitoring – Legislative Matrix: Monitor state legislative, regulatory, or other identified issues of interest to the City and provide a matrix of all such items for inclusion in all Legislative Meeting agenda packets, and at the request of the Office of the City Manager. The matrix will include: 1) bill/issue summary; 2) bill/issue status; 3) City position on the bill/issue; and 4) status/actions to date. G. Legislative Meetings – Participation, Reports, Follow-up Actions: a. Participate in monthly conference calls with the Office of the City Manager and assist in the development of agendas for quarterly Mayor, City Council, and Executive City Staff briefings. b. Provide a written memo and verbally report to the Office of the City Manager on the status of all items of interest to City, participation in hearings, meetings, and other forums on behalf of the City; and advocacy efforts taken on behalf of the City. Provide bill summaries, analysis, and other relevant information on all state items on the quarterly Mayor, City Council, and Executive City Staff briefings agendas. c. Follow-up as appropriate on all research and action items requested by the Office of the City Manager. H. Research, Analysis & Reports: Provide comprehensive research, in-depth analysis, and verbal and written reports on matters identified within the City of San Bernardino Legislative & Regulatory Platform, or as requested by the Office of the City Manager on: pg. 2 Professional Services Agreement Joe A. Gonsalves & Son 20.b Packet Pg. 696 Attachment: CM.Agreement with Joe A. Gonsalves Son.ATTACHMENT 1 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative a. Proposed legislation; b. Executive proposals, budget proposals, grant programs, and regulatory/rulemaking processes with potential fiscal or policy impacts to the City; c. Emerging issues and the overall political atmosphere in the State Capitol and throughout the state; and d. Proposed ballot initiatives and propositions scheduled to come before the California electorate. I. Location: Vendor must have an office within a one-mile radius of the State Capitol Building in Sacramento, California. J. Dedicated Staff: Provide experienced and professional, senior level legislative advocacy staff dedicated to City whose primary responsibility is to respond to City requests for: a. Legislative reports, analyses, and research; b. Intelligence gathering, strategic advisement; c. Draft letters, talking points, or briefing materials articulating City positions; and d. Other items as requested. 2. COMPENSATION AND EXPENSES. a. For the services delineated above, the CITY, shall pay to VENDOR the monthly sum of $7,000.00 (Seven Thousand Dollars) payable in advance on the first day of each month for Legislative Advocacy Services. b. CITY shall reimburse VENDOR for any travel and/or other expenses directly related to any request by CITY for VENDOR to participate in any meetings or activities outside of Sacramento pending prior written authorization from CITY. c. No other expenditures made by VENDOR shall be reimbursed by CITY. 3. TERM; TERMINATION. The term of this Agreement shall be for a period of three (3) years, provided however, that the CITY may extend the term two (2) times by a period of one additional year on the same pg. 3 Professional Services Agreement Joe A. Gonsalves & Son 20.b Packet Pg. 697 Attachment: CM.Agreement with Joe A. Gonsalves Son.ATTACHMENT 1 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative terms and conditions as provided herein by giving VENDOR written notice of its desire to extend the term of the Agreement. This Agreement may be terminated at any time by thirty (30) days prior written notice by either party. The terms of this Agreement shall remain in force unless amended by written agreement of the parties executed on or before date of expiration of current term of the agreement. 4. INDEMNITY. Vendor agrees to and shall indemnify, defend, and hold the City, its elected officials, employees, agents or representatives, free and harmless from all claims, actions, damages and liabilities of any kind and nature arising from bodily injury, including death, or property damage, based or asserted upon any or alleged act or omission of Vendor, its employees, agents, or subcontractors, relating to or in any way connected with the accomplishment of the work or performance of service under this Agreement, unless the bodily injury or property damage was actually caused by the sole negligence of the City, its elected officials, employees, agents or representatives. As part of the foregoing indemnity, Vendor agrees to protect and defend at its own expense, including attorney’s fees the City, its elected officials, employees, agents or representatives from any and all legal actions based upon such actual or alleged acts or omissions. Vendor hereby waives any and all rights to any types of express or implied indemnity against the City, its elected officials, employees, agents or representatives, with respect to third party claims against the Vendor relating to or in any way connected with the accomplishment of the work or performance of services under this Agreement. 5. INSURANCE. While not restricting or limiting the foregoing, during the term of this Agreement, VENDOR shall maintain in effect policies of comprehensive public, general and automobile liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory worker’s compensation coverage, and shall file copies of said policies with the CITY’s Risk Manager prior to undertaking any work under this Agreement. CITY shall be set forth as an additional named insured in each policy of insurance provided hereunder. The Certificate of Insurance furnished to the CITY shall require the insurer to notify CITY of any change or termination in the policy. 6. NON-DISCRIMINATION. In the performance of this Agreement and in the hiring and recruitment of employees, VENDOR shall not engage in, nor permit its officers, employees or agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, mental or physical disability, medical conditions, marital status, sexual gender or sexual orientation, or any other status protected by law. pg. 4 Professional Services Agreement Joe A. Gonsalves & Son 20.b Packet Pg. 698 Attachment: CM.Agreement with Joe A. Gonsalves Son.ATTACHMENT 1 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative 7. INDEPENDENT CONTRACTOR. VENDOR shall perform work tasks provided by this Agreement, but for all intents and purposes VENDOR shall be an independent contractor and not an agent or employee of the CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for VENDOR and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. 8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS. VENDOR warrants that it possesses or shall obtain, and maintain a business registration certificate pursuant to Chapter 5 of the Municipal Code, and any other licenses, permits, qualifications, insurance and approval of whatever nature that is legally required of VENDOR to practice its business or profession. 9. NOTICES. Any notices to be given pursuant to this Agreement shall be deposited with the United States Postal Service, postage prepaid and addressed as follows: TO THE CITY: Office of the City Manager CITY OF SAN BERNARDINO 290 N. D St. San Bernardino, CA 92401 TO THE VENDOR: Joe A. Gonsalves & Son 925 L Street, Suite 250 Sacramento, CA 95814 10. ATTORNEYS’ FEES. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions hereof. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of the CITY shall be considered as “attorneys’ fees” for the purposes of this paragraph. pg. 5 Professional Services Agreement Joe A. Gonsalves & Son 20.b Packet Pg. 699 Attachment: CM.Agreement with Joe A. Gonsalves Son.ATTACHMENT 1 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative 11. ASSIGNMENT. VENDOR shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of the VENDOR’s interest in this Agreement without CITY’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for the termination of this Agreement. Regardless of CITY’s consent, no subletting or assignment shall release VENDOR of VENDOR’s obligation to perform all other obligations to be performed by VENDOR hereunder for the term of this Agreement. 12. VENUE. The parties hereto agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated either in the State courts located in the County of San Bernardino, State of California or the U.S. District Court for the Central District of California, Riverside Division. The aforementioned choice of venue is intended by the parties to be mandatory and not permissive in nature. 13. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 14. SUCCESSORS AND ASSIGNS. This Agreement shall be binding on and inure to the benefit of the parties to this Agreement and their respective heirs, representatives, successors, and assigns. HEADINGS. The subject headings of the sections of this Agreement are included for the purposes of convenience only and shall not affect the construction or the interpretation of any of its provisions. 15. HEADINGS. The subject headings of the sections of this Agreement are included for the purposes of convenience only and shall not affect the construction or the interpretation of any of its provisions. 16. SEVERABILITY. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any pg. 6 Professional Services Agreement Joe A. Gonsalves & Son 20.b Packet Pg. 700 Attachment: CM.Agreement with Joe A. Gonsalves Son.ATTACHMENT 1 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 17. ENTIRE AGREEMENT; MODIFICATION. This Agreement constitutes the entire agreement and the understanding between the parties, and supersedes any prior agreements and understandings relating to the subject manner of this Agreement. This Agreement may be modified or amended only by a written instrument executed by all parties to this Agreement. pg. 7 Professional Services Agreement Joe A. Gonsalves & Son 20.b Packet Pg. 701 Attachment: CM.Agreement with Joe A. Gonsalves Son.ATTACHMENT 1 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative PROFESSIONAL SERVICES AGREEMENT JOE A. GONSALVES & SON (VENDOR) IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and date set forth below. Dated: ____________, 2018 VENDOR. – JOE A. GONSALVES & SON By: ___________________________ Jason A. Gonsalves, Corporate Secretary/Advocate Dated ____________, 2018 CITY OF SAN BERNARDINO By: ___________________________ Andrea Miller, City Manager Approved as to Form: By: ______________________ City Attorney pg. 8 Professional Services Agreement Joe A. Gonsalves & Son 20.b Packet Pg. 702 Attachment: CM.Agreement with Joe A. Gonsalves Son.ATTACHMENT 1 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative CITY OF SAN BERNARDINO PURCHASING DIVISION 290 NORTH D STREET 3RD FLOOR SAN BERNARDINO, CA 92401 (909) 384-5346 REQUEST FOR PROPOSALS F-18-19 For LEGISLATIVE ADVOCACY SERVICES – STATE Proposals are due by 3:00 pm (PST) on Friday, June 25, 2018 20.c Packet Pg. 703 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 2 of 38 TABLE OF CONTENTS 1. Title Page ……………. 1 2. Table of Contents ……………. 2 3. Introduction ……………. 4 a. Request for Proposal Letter ……………. 5 b. Intent ……………. 6 c. Community Overview ……………. 6 d. Objective ……………. 6 e. Calendar ……………. 8 4. General Instructions to Proposer(s) ……………. 9 a. Bid Documents to be Returned ……………. 10 b. Pre-Proposal Meeting ……………. 11 c. Examination of Proposal Documents ……………. 11 d. Addenda ……………. 11 e. Clarifications ……………. 11 f. Submission of Proposals ……………. 12 g. Pre-Contractual Expenses ……………. 13 h. Contract Award ……………. 14 i. Acceptance of Order ……………. 14 j. Business License ……………. 14 k. Local Vendor Preference ……………. 14 5. Scope of Work ……………. 15 a. Contractor Minimum Work Performance Percentage ……………. 16 b. Proactive Intelligence Gathering & Reporting ……………. 16 c. Identification & Review ……………. 16 d. Position, Strategy & Action Recommendations ……………. 16 e. Take Action & Advocate on Behalf of City ……………. 16 f. Monitoring ……………. 16 g. Legislative Meetings ……………. 17 h. Research, Analysis & Reports ……………. 17 i. Location ……………. 17 j. Dedicated Staff ……………. 17 6. Contract Term ……………. 18 a. Contract Term ……………. 19 7. Bid Contents and Forms ……………. 20 a. Form ……………. 21 8. General Evaluation Criteria ……………. 23 a. Evaluation Criteria ……………. 24 b. Evaluation Procedure ……………. 25 c. Award ……………. 25 d. Tie Proposals ……………. 25 e. Notification of Award ……………. 25 9. General Specifications ……………. 26 a. General Specifications ……………. 27 20.c Packet Pg. 704 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 3 of 38 10. Exhibit A ……………. 32 a. Vision for the Future ……………. 33 b. Job Statement ……………. 34 c. Operating Paradigm ……………. 35 d. 2018-2019 Goals & Objective ……………. 36 20.c Packet Pg. 705 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 4 of 38 SECTION I. INTRODUCTION 20.c Packet Pg. 706 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 5 of 38 May 30, 2018 SUBJECT: REQUEST FOR PROPOSALS (RFP) F-18-19 The City of San Bernardino (City) invites proposals from qualified vendors for: Legislative Advocacy Services Parties interested in obtaining a complete copy of this RFP F-18-19 may do so by accessing the City of San Bernardino’s website at www.sbcity.org/bids From the issuance date of this Request for Proposal until a Vendor is selected, and the selection is announced, Proposers are not permitted to communicate with any City staff or officials regarding this procurement, other than during interviews, demonstrations, and/or site visits, except at the direction of Vanessa Slouka, Accounting Assistant, the designated representative of the City of San Bernardino. Contact with anyone not designated will result in elimination from the bid process. Closing Date: Proposals must be submitted before 3:00 PM, PST, June 25, 2018, via www.sbcity.org/bids. Proposals submitted in any other method will not be accepted. Issuance of this RFP and/or receipt of proposals does not commit the City to award a contract. Sincerely, Vanessa Slouka, Accounting Assistant Office of the City Manager | Andrea M. Miller, City Manager 20.c Packet Pg. 707 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 6 of 38 INTRODUCTION INTENT The City of San Bernardino, Office of the City Manager, hereinafter referred to as “City”, is soliciting proposals from qualified organizations hereinafter referred to as “Advocate”, to provide State Legislative Advocacy Services. This solicitation is intended for a single, exclusive AGREEMENT. COMMUNITY OVERVIEW The City of San Bernardino is seeking a qualified consultant to assist the City in legislative advocacy services. The City of San Bernardino is an incorporated Charter City, which operates under the Council/Manager form of government. It is a full-service City (except for Fire which is provided through the San Bernardino County Fire District) with a General Fund budget of approximately $160 million for Fiscal Year 2017-2018, in addition to a $22.6 million Capital Improvement Budget. The City is located approximately 60 miles east of Los Angeles, 120 miles northeast of metropolitan San Diego, and 55 miles northwest of Palm Springs adjacent to the cities of Highland, Redlands, Loma Linda, Colton, and Rialto. The City’s elevation is 1,049 feet above sea level and encompasses the area of approximately 62.24 square miles. The estimated median income in the City is $37,047. There are approximately 62,683 housing units in the City. The City’s demographics are predominately Hispanic (62%), White (17%), and African American (14%). The City of San Bernardino is a community rich in history and cultural diversity, where influences of Native Americans, Mexican settlers, Spanish missionaries and Mormon emigrants can still be seen throughout the City today. Once a thriving economic hub, the City of San Bernardino fell on hard economic times with the closing of Kaiser Steel in 1983, and Norton Air Force base in March 1995. The City of San Bernardino’s financial woes culminated when the City filed for Chapter 9 bankruptcy protection in August 2012. In mid-2017, the City emerged from bankruptcy and is now vigorously pursuing methods to improve its financial condition. OBJECTIVE The City of San Bernardino seeks a legislative advocacy firm to represent the City’s public policy interests in Sacramento before the Legislative and the Executive Branch of the State Government. The Office of the City Manager, working at the direction of the Mayor and City Council, coordinates the advocacy of the City’s interests and will work closely with the legislative advocacy firm in achieving the City’s public policy goals in Sacramento. These goals may be achieved through legislation or legislative amendments sponsored by the City or by advocacy for or against legislation or regulatory policies that affect the City’s interests. Most of the work involved with this contract will be performed in Sacramento, but occasionally may involve trips to the City of San Bernardino. 20.c Packet Pg. 708 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 7 of 38 The City’s 2018 Legislative & Regulatory Platform based upon the City’s 2018-2019 Goals and Objectives (referenced in Exhibit A) are as follows: A. Provide for the Safety of City Residents and Business The City is committed to developing programs that enhance emergency response, reduce crime and ensure neighborhoods and business areas are safe. As such, the City will support legislation and seek funding that strengthens law enforcement’s efforts to prevent and reduce crime and will help to contribute to emergency response and preparedness. The City will oppose reductions in Federal and State funding for public safety programs and services. B. Create, Maintain and Grow Jobs and Economic Value in the City The City is dedicated to building a vibrant and sustainable local economy that allows for business development and job creation. The City is also committed to supporting workforce development, education and vocational training programs that meet the needs of the business community and improve job opportunities for residents. To achieve these goals and objectives, the City will support legislative actions and funding that encourage redevelopment and provide the tools and resources needed for business growth and development and promote regional education and job training programs. The City will oppose measures that restrict the City’s ability to provide for local economic development or create disadvantages for businesses at the local and state levels. C. Ensure Development of a Well-Planned, Balanced, and Sustainable City The City’s infrastructure has a direct impact on the quality of life in the City for both residents and the business community. As such, the City is committed to maintaining, improving and developing the City’s infrastructure including housing, roads, bridges, sidewalks, storm drains, street lights, traffic signals, water and wastewater systems as well as public transportation systems. The City will support legislation that provides funding and support to meet the infrastructure needs of the community. The City will oppose legislation that removes or reduces funding that would impact infrastructure projects or public transportation. The City will also oppose any legislation or regulations that preempt local zoning or require development of a particular type. D. Operate in a Fiscally Responsible and Business-Like Manner The City is committed to developing a sustainable financial strategy that creates stability and allows the City to reinvest in operations and infrastructure. In these efforts, the City will support legislation that secures local government funding sources such as property taxes, sales tax, transient occupancy taxes and Community Development Block Grants (CDBG). The City will oppose legislation that creates unfunded mandates and legislation that eliminates or diverts local revenue. 20.c Packet Pg. 709 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 8 of 38 CALENDAR OF EVENTS Issue of RFP Monday, June 4, 2018 Deadline for Written Questions 3:00 p.m., PST, Wednesday, June 13, 2018 Addendum (if necessary) Friday, June 15, 2018 Proposal Submittal Deadline 3:00 p.m., PST, Monday, June 25, 2018 20.c Packet Pg. 710 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 9 of 38 SECTION II. GENERAL INSTRUCTIONS TO PROPOSER(S) 20.c Packet Pg. 711 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 10 of 38 RFP F-18-19 LEGISLATIVE ADVOCACY SERVICES Bid Documents to Be Returned [_] Title Page [_] Cover Letter / Letter of Introduction [_] Project Approach [_] Project Staffing [_] Vendor Qualifications and Project Experience [_] Statement of Qualifications & References [_] Statement of Past Contract Disqualifications [_] Original Proposal [_] Authorized Binding Signature(s) [_] Proof of Insurance [_] Electronic Acknowledgement of Addenda [_] 120 Day Minimum Proposal Validity Statement [_] Workers’ Compensation Insurance Certificate [_] Copy appropriate Licenses where applicable Proposer(s) are requested to submit this checklist completed with all bid documents. This list may not be inclusive of all documents needed to submit your RFP. 20.c Packet Pg. 712 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 11 of 38 GENERAL INSTRUCTIONS TO PROPOSER(S) A. Pre-Proposal Meeting Not Applicable B. Examination of Proposal Documents 1. By submitting a proposal, the proposer represents that it has thoroughly examined and become familiar with the items required under this RFP and that it is capable of quality performance to achieve the City's objectives. 2. The City reserves the right to remove from its mailing list for future RFPs, for an undetermined period of time, the name of any proposers for failure to accept a contract, failure to respond to two (2) consecutive RFPs and/or unsatisfactory performance. Please note that a “No Proposal” is considered a response. C. Addenda Any City changes to the requirements will be made by written addendum to this RFP. Any written addenda issued pertaining to this RFP shall be incorporated into the terms and conditions of any resulting Purchase Order or Agreement. The City will not be bound to any modifications to or deviations from the requirements set forth in this RFP as the result of oral instruction. For automatic electronic notifications, please visit our website and register your firm at www.sbcity.org/bids D. Clarifications 1. Examination of Documents Should a Bidder require clarifications of this RFP, the Bidder shall notify the City in writing in accordance with Section D.2 below. Should it be found that the point in question is not clearly and fully set forth, the City will issue a written addendum clarifying the matter which will be sent to all persons who have requested the RFP. 20.c Packet Pg. 713 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 12 of 38 2. Submitting Requests a. With the exception of oral questions asked at the Pre-Proposal Meeting, all questions, clarifications or comments shall be put in writing and must be received by the City no later than 3:00 pm on June 13, 2018 and be addressed as follows: www.sbcity.org/bids To ensure fairness and avoid misunderstandings, all communications must be in written format and addressed only to the individual set forth above. Any verbal communications will not be considered or responded to. Written communications should be submitted via e-mail to the address provided above. All questions received by the due date will be logged and reviewed and if required, a response will be provided via an addendum to the RFP that will be posted on the City’s website. Any communications, whether written or verbal, with the Mayor, any City Councilmember, or City staff other than the individual indicated above, prior to award of a contract by City Council, is strictly prohibited and the Proposer shall be disqualified from consideration. b. The City will also accept questions sent by facsimile machines; however, all faxed questions must be received by the City no later than the date and time specified above. Send facsimile transmissions to (909) 384-5043, attention Vanessa Slouka. c. Inquiries received after 3:00 PM June 13, 2018 will not be accepted. 3. City Responses Responses from the City will be communicated in writing to all recipients of this RFP by a posting to our website, www.sbcity.org/bids by the close of business June 18, 2018. For automatic electronic notifications, please visit our Homepage and register at www.sbcity.org/bids . All firms are welcome to participate in this project. Any firm that is not registered will not be permitted to participate in this project. 20.c Packet Pg. 714 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 13 of 38 E. Submission of Proposals 1. Date and Time All proposals are to be submitted to the city’s portal. BEFORE 3:00 PM, PST, June 25, 2018, bids received at or after 3:00 PM will be rejected by the City as non-responsive. 2. Address Proposals shall be submitted via electronic upload at: www.sbcity.org/bids 3. Identification of Proposals Proposer(s) shall submit via upload a proposal package consisting of: a. One (1) signed original of proposer’s proposal; b. One (1) original Price Form or Fee Schedule 4. Acceptance of Proposals a. The City reserves the right to accept or reject any and all proposals, or any item or part thereof, or to waive any informalities or irregularities in proposals. b. The City reserves the right to withdraw this RFP at any time without prior notice and the City makes no representations that any contract will be awarded to any proposer(s) responding to this RFP. c. The City reserves the right to postpone proposal opening for its own convenience. d. Faxed, emailed or hand carried proposals will not be accepted. 20.c Packet Pg. 715 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 14 of 38 F. Pre-Contractual Expenses Pre-contractual expenses are defined as expenses incurred by the proposer(s) in: 1. Preparing its proposal in response to this RFP; 2. Submitting that proposal to the City; 3. Negotiating with the City any matter related to this proposal; or 4. Any other expenses incurred by the proposer(s), if any, prior to date of award of the contract. The City shall not, in any event, be liable for any pre-contractual expenses incurred by proposer(s) in the preparation of its proposal. Proposer(s) shall not include any such expenses as part of its proposal. G. Contract Award Issuance of this RFP and receipt of proposals does not commit the City to award a Purchase Order. The City reserves the right to postpone proposal opening for its own convenience, to accept or reject any or all proposals received in response to this RFP, and to negotiate with other than the selected proposer(s) should negotiations with the selected proposer(s) be terminated. The City also reserves the right to apportion the award among two or more proposers. H. Acceptance of Order The successful proposer(s) will be required to accept a Purchase Order in accordance with and including as a part thereof the published Request for Proposals, and the RFP documents including all requirements, conditions and specifications contained therein, with no exceptions other than those specifically listed in the written Purchase Order. I. Business License The City’s Business Ordinance requires that any business doing business with the City obtain and maintain a valid City Business Registration Certificate during the terms of the contract. Proposer(s) agrees to obtain such certificate prior to undertaking any work under this contract. 20.c Packet Pg. 716 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 15 of 38 J. Local Vendor Preference The City gives any formal or informal bid submitted by a local bidder a one percent (1%) credit for goods and materials, where labor and/or installation is incidental; and a five percent (5%) credit on Contractual services, for comparison purposes with other bidders, as authorized in the San Bernardino Municipal Code Section 3.04.125 and Executive Order 2003-1, respectively. For the purposes of this section, “local bidders” shall be bidders for which the point of sale of the goods, materials, or services shall be within the City limits of San Bernardino. 20.c Packet Pg. 717 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 16 of 38 SECTION III. SCOPE OF WORK 20.c Packet Pg. 718 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 17 of 38 SCOPE OF WORK The City of San Bernardino is seeking a qualified firm to complete the objectives identified herein and may consider retention of the selected legislative advocacy firm over multiple fiscal years. The Scope of Work for this proposal, includes: A. Contractor Minimum Work Performance Percentage: CONTRACTOR shall perform with their own organization contract work amounting to not less than 100 percent of the original total contract price, except that any designated ‘Specialty Items. CONTRACTOR will be automatically disqualified if any portion of the work will be subcontracted except for later designated special projects, may be performed by subcontract upon approval by the City. The successful proposer with ensure that the City’s policy positions and goals are advanced with City of San Bernardino legislators and with other key decision-makers in the Legislature and Administration. In advising and representing the City, the legislative consultant must apply experience, judgment, strategic expertise, and interpersonal skills to advance the City’s interests in legislative and regulatory forums. B. Proactive Intelligence Gathering & Reporting: Exercise initiative to gather intelligence on emerging issues and trends based on professional expertise and knowledge of the City’s interests; and provide timely reports and advance notification to the Office of the City Manager. C. Identification & Review: Proactively and systematically identify legislative and regulatory issues which may impact the City’s current or potential future business interests; and provide information on identified items to the Office of the City Manager and departmental experts for appropriate review. D. Position, Strategy & Action Recommendations: Make recommendations on legislative and regulatory issues of interest to City related to City positions, political and technical strategies, and proactive actions. E. Take Action & Advocate on Behalf of City: Execute position, strategy and action recommendations, and advocate City positions to legislators, the Office of the City Manager, departments, and agencies as directed by the Mayor and City Council. F. Monitoring – Legislative Matrix: Monitor state legislative, regulatory, or other identified issues of interest to the City and provide a matrix of all such items for inclusion in all Legislative Meeting agenda packets, and at the request of the Office of the City Manager. The matrix will include: 1) bill/issue summary; 2) bill/issue status; 3) City position on the bill/issue; and 4) status/actions to date. 20.c Packet Pg. 719 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 18 of 38 G. Legislative Meetings – Participation, Reports, Follow-up Actions: a. Participate in monthly conference calls with the Office of the City Manager and assist in the development of agendas for quarterly Mayor, City Council, and Executive City Staff briefings. b. Provide a written memo and verbally report to the Office of the City Manager on the status of all items of interest to City, participation in hearings, meetings, and other forums on behalf of the City; and advocacy efforts taken on behalf of the City. Provide bill summaries, analysis, and other relevant information on all state items on the quarterly Mayor, City Council, and Executive City Staff briefings agendas. c. Follow-up as appropriate on all research and action items requested by the Office of the City Manager. H. Research, Analysis & Reports: Provide comprehensive research, in-depth analysis, and verbal and written reports on matters identified within the City of San Bernardino Legislative & Regulatory Platform, or as requested by the Office of the City Manager on: a. Proposed legislation; b. Executive proposals, budget proposals, grant programs, and regulatory/rulemaking processes with potential fiscal or policy impacts to the City; c. Emerging issues and the overall political atmosphere in the State Capitol and throughout the state; and d. Proposed ballot initiatives and propositions scheduled to come before the California electorate. I. Location: Proposer must have an office within a one-mile radius of the State Capitol Building in Sacramento, California. J. Dedicated Staff: Provide experienced and professional, senior level legislative advocacy staff dedicated to City whose primary responsibility is to respond to City requests for: a. Legislative reports, analyses, and research; b. Intelligence gathering, strategic advisement; c. Draft letters, talking points, or briefing materials articulating City positions; and d. Other items as requested. 20.c Packet Pg. 720 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 19 of 38 SECTION IV. CONTRACT TERM 20.c Packet Pg. 721 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 20 of 38 CONTRACT TERM A. The term of the AGREEMENT will be for a period of three (3) years with the option to extend the AGREEMENT for two (2) additional one-year periods. a. City is not required to state a reason if it elects not to renew. B. If the AGREEMENT includes options for renewal or extension, ADVOCATE must commence negotiations for any desired rate changes a minimum of ninety days (90) prior to the expiration of the AGREEMENT. a. Both parties shall agree upon rate extension(s) or changes in writing. C. The AGREEMENT shall contain a clause that provides that ADVOCATE and CITY reserve the right to cancel the AGREEMENT, or any extension of the AGREEMENT, without cause, with a thirty day (30) written notice, or immediately with cause. 20.c Packet Pg. 722 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 21 of 38 SECTION V. BID CONTENTS AND FORMS 20.c Packet Pg. 723 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 22 of 38 Bid Contents and Forms Are there any other additional or incidental costs that will be required by your firm in order to meet the requirements of the Proposal Specifications? [_] Yes [_] No If you answered “Yes,” please provide detail of said additional costs: Please indicate any elements of the Proposal Specifications that cannot be met by your firm. Have you included in your proposal all informational items and forms as requested? [_] Yes [_] No If you answered “No,” please explain: This offer shall remain firm for 120 days from RFP close date. Terms and conditions as set forth in this RFP apply to this proposal. Cash discount allowable % days; unless otherwise stated, payment terms are: Net thirty (30) days. In signing this proposal, proposer(s) warrants that all certifications and documents requested herein are attached and properly completed and signed. 20.c Packet Pg. 724 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 23 of 38 Firm Name: ________________________________________________ Address: ________________________________________________ ________________________________________________ Phone: ________________________________________________ Email: ________________________________________________ Fax: ________________________________________________ Authorized Signature: ________________________________________________ Print Name: ________________________________________________ Title: ________________________________________________ IF SUBMITTING A “NO PROPOSAL,” PLEASE STATE REASON(S) BELOW: 20.c Packet Pg. 725 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 24 of 38 SECTION VI. GENERAL EVALUATION CRITERIA 20.c Packet Pg. 726 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 25 of 38 GENERAL EVALUATION CRITERIA A. Evaluation Criteria 1. Capabilities of Firm to Effectively Complete the Project Requirements – 35% Depth of proposer’s understanding of, and ability to manage, City's requirements; ability to meet task deadlines; utility of suggested enhancements or technical innovations. 2. Qualifications of Firm/Related Experience – 45% Experience in providing services similar to those requested herein; experience working with public agencies; strength and stability of the firm; strength, stability, experience and technical competence of subcontractors; assessment by client references; qualifications of project staff; key personnel’s level of involvement in performing related work; logic of project organization; adequacy of labor commitment. 3. Reasonable of Cost and Price – 10% Reasonableness of the individual firm-fixed prices and competitiveness of quoted prices with other proposals received; adequacy of the data in support of figures quoted; basis on which prices are quoted. 4. Completeness of Response – 5% Completeness of response in accordance with RFP instructions; exceptions to or deviations from the RFP requirements which the proposer(s) cannot or will not accommodate; other relevant factors not considered elsewhere. 5. Local Vendor Preference – 5% As approved in Executive Order 2003-01--proposer(s) which possess a fixed office or distribution point with at least one owner or employee located within the City of San Bernardino, and possessing all valid and current permits, and licenses required to transact such business, including, but not limited to a City Business Registration Certificate shall receive a five percent (5%) preference. [Unless contrary to Federal, State or Local Law (such as contracts for the construction of public works projects), or unless contrary to the requirements mandated by the funding source for such contractual services such as the Federal Government or other source which requires award to the lowest responsible proposer(s).] 20.c Packet Pg. 727 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 26 of 38 B. Evaluation Procedure All proposals received as specified will be evaluated by City staff in accordance with the above criteria. Additional sub-criteria beyond those listed may be considered by the evaluators in applying the major criteria to the proposals. During the evaluation period, the City may require an on-site visit and/or tour of the proposer(s)’s place of business. Proposer(s) should be aware, however, that award may be made without vendor visits, interviews, or further discussions. C. Award Depending on the dollar amounts of the offers received, City staff will either select the vendor best meeting the above-specified criteria or submit to City Council, for consideration and selection, the offer(s) judged by staff to be the most competitive. The City reserves the right to withdraw this RFP at any time without prior notice and, furthermore, makes no representations that any contract(s) will be awarded to any proposer(s) responding to this RFP. The City expressly reserves the right to postpone proposal opening for its own convenience, to waive any informality or irregularity in the proposals received, and to reject any and all proposals responding to this RFP without indicating any reasons for such rejection. The City also reserves the right to award its total requirement among two or more proposers as City staff may deem to be in its best Interests. In addition, negotiations may or may not be conducted with proposer(s); therefore, the proposal submitted should contain the proposer’s most favorable terms and conditions, since the selection and award may be made without discussion with any proposer(s). D. Tie Proposals If the final evaluation scores (after applying the local preference allowance) result in a tie score, the recommendation for award will be given to the local vendor. E. Notification of Award Proposer(s) who submit a proposal in response to this RFP shall be notified regarding the firm(s) who was awarded the contract. Such notification shall be made within a reasonable time after the date the contract is awarded. 20.c Packet Pg. 728 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 27 of 38 SECTION VII. GENERAL SPECIFICATIONS 20.c Packet Pg. 729 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 28 of 38 GENERAL SPECIFICATIONS 1. Each bid shall be in accordance with Request for Proposal (RFP) Number F-18-19. All specifications are minimum. Bidders are expected to meet or exceed these specifications as written. Bidder shall attach to their bid a complete detailed itemization and explanation for each and every deviation or variation from the RFP specifications and requirements. Conditional bids, or those that take exception to the RFP specifications and requirements, may be considered non-responsive and may be rejected. 2. The City reserves the right to accept or reject any and all bids and to award a contract to the bidder whom best meets the City's requirements. This may include waiver of minor irregularities or discrepancies, or nonconformity to specifications in appropriate circumstances. Purchase shall be on a best buy basis after due consideration of all relevant factors, including but not limited to, workmanship, accessibility of parts and service, known evidence of manufacturer’s responsibility and record, durability and known operational record of product and suitability as well as conformity to City needs and requirements. In all cases the best interest of the City shall prevail in all contract awards. 3. The City of San Bernardino reserves the right to purchase more or less than the quantities specified at unit prices bid. 4. Bids shall be firm offers, subject to acceptance or rejection within 120 days of the opening thereof. 5. Regular dealer. No bidder shall be acceptable who is not a reputable manufacturer or dealer of such items as submitted for bid consideration. 6. All materials, workmanship and finish entering into the construction of the equipment must be of the best of these respective kinds and must conform to the character of the equipment and the service for which it is intended to be used and shall be produced by use of the current manufacturing processes. “Seconds”, factory rejects, and substandard goods are not acceptable. 7. Each bidder shall submit with their bid a copy of the proposed product specifications, complete detailed drawings, and other descriptive matter in sufficient detail to clearly describe the equipment, materials and parts offered. 8. Manufacturer and/or Contractor shall defend any and all suits and assume all liability for any and all claims made against the City of San Bernardino or any of its officials or agents for the use of any patented process, device or article forming a part of equipment or any item furnished under the contract. 9. Each bidder must state in their bid the guaranteed delivery date of product and/or services in number of calendar days from the date of contract execution by the City of San Bernardino, time is of the essence relative to this contract. Contractor shall prosecute the work continuously and diligently and shall deliver the items at the earliest possible date following the award of the contract. 10. Each bidder shall list in their bid all factory, manufacturer’s and/or dealer’s warranty and/or guarantee coverage and shall submit such written documents evidencing the same attached to the bid. 11. Successful bidder(s) (Contractor) shall furnish and deliver to the City complete equipment as bid and awarded, ready for installation and fully equipped as detailed in these specifications. 20.c Packet Pg. 730 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 29 of 38 12. Price shall be quoted F.O.B. San Bernardino (all transportation charges shall be fully prepaid) and shall include all discounts. Bid shall include California sales tax, where applicable, (effective October 1, 2017) computed at the rate of 8.0%, (this will normally be shown as a separate line item on the price form). 13. City shall make payment within thirty (30) days after the complete delivery and acceptance of the specified items by the City of San Bernardino and receipt of the Contractor's priced invoice. 14. All “standard equipment” is included in any bid. Bidders furnishing bids under these specifications shall supply all items advertised as “standard” equipment even if such items are not stipulated in the specifications, unless otherwise clearly accepted in the bid. 15. The items which the bidder proposes to furnish the City must comply in all respects with the appropriate safety regulations of all regulatory commissions of the Federal Government and the State of California, whether such safety features and/or items have been specifically outlined in these specifications or not. 16. Contractor delivering equipment pursuant to these RFP specifications shall guarantee that equipment meets specifications as set forth herein. If it is found that equipment delivered does not meet requirements of these specifications the Contractor shall be required to correct the same at their own expense. 17. By submitting a bid, each bidder agrees that in the event complete delivery is not made within the time or times set forth pursuant to this specification, damage will be sustained by the City, and that it is, and will be impractical and extremely difficult to, ascertain the actual damage which the City will sustain in the event of and by reason of such delay. 18. In case the delivery of the items under this contract is delayed due to strikes, injunctions, government controls, or by reason of any cause or circumstance beyond the control of the Contractor, the time for delivery may be extended (in the City’s sole discretion) by a number of days to be determined in each instance by mutual written agreement between the Contractor and the Purchasing Manager of the City of San Bernardino. The City shall not unreasonably refuse such extension. 19. Contract. Each bid shall be submitted and received with the understanding that acceptance by the City of San Bernardino of bid in response to this solicitation shall constitute a contract between the Contractor and the City. This shall bind the Contractor to furnish and deliver at the price bid and in complete accordance with all provisions of RFP No. F-18-19. In most cases the basis of award will be the City’s standard purchase order that may or may not incorporate this solicitation by reference. 20. Prohibited interest. No member, officer, or employee of the City or of any agency of the City during his tenure or for one year thereafter shall have any interest, direct or indirect in this contract or the proceeds thereof. Furthermore, the parties hereto covenant and agree that to their knowledge no board member, officer or employee of the City has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the contracting party other than the City, and that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all such information will be made in writing to the other party or parties, even if such interest would not be considered a conflict of interest under Article 4 (commencing with Section 1090) or Article 4.6 (commencing with Section 1120) of Division 4 of Title I of the Government Code of the State of California. 20.c Packet Pg. 731 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 30 of 38 21. One Document. These specifications, the notice inviting bids, RFP F-18-19, the Contractor’s bid, any written agreement executed by the parties, the purchase order and all documents referred to in the complete specifications and purchase order, and all written modifications of said documents shall be construed together as one document. Anything called for in any one of said documents shall be deemed to be required equally as if called for in all. Anything necessary to complete the work properly shall be performed by the contractor, whether specifically set out in the contract or not. All sections of the specifications shall be read as constituting a whole and not as an aggregation of individual parts, and whatever is specified in one section shall be construed as applying to all sections. 22. The City of San Bernardino reserves the right to accept or reject any and all bids. 23. Prompt payment. Each bidder may stipulate in their bid a percentage prompt payment discount to be taken by the City in the event the City makes payment to the Contractor within ten (10) working days of receipt of material and approval of invoice. For the purpose of this provision, payment is deemed to be made on the date of mailing of the City check. NOTE: prompt payment discounts will only be used during bid evaluation in the case of ties. 24. Inquiries. Direct bidding process inquiries to Vanessa Slouka at (909) 384-5346. Technical questions shall be submitted through the city’s portal www.sbcity.org/bids. The answers to material questions will be provided to all potential bidders. 25. Bid/Price forms. No bid will be acceptable unless prices are submitted on the pricing forms furnished herein, and all required forms are completed and included with bid. Submit all bids, SIGNED via www.sbcity.org/bids. CLEARLY MARK THE RFP SPECIFICATION TITLE: LEGISLATIVE ADVOCACY SERVICES FOR THE CITY OF SAN BERNARDINO and Number F-18-19. 26. Time. All bids must be received in the Purchasing Division BEFORE 3:00 PM, PST, June 25, 2018, where at such time and said place bids will be publicly opened, examined and declared. Any bid may be withdrawn by bidder prior to the above scheduled time for the opening of bids. Any bid received after that time and date specified shall NOT be considered. 27. The City of San Bernardino reserves the right at its own discretion to award separate contracts for each category, or to award multiple contracts, or to award one contract for furnishing and delivering of all equipment and/or services in all categories. 28. Equipment. In the purchase of equipment, Contractor shall be required to furnish one (1) OPERATORS MANUAL and one (1) PARTS MANUAL for all equipment bid. 29. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (U.S.C. Sec 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700 of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. 20.c Packet Pg. 732 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 31 of 38 30. Contractor shall indemnify, defend and hold City, its officers, employees and agents harmless from any claim, demand, liability, suit, judgment or expense (including, without limitation, reasonable costs of defense) arising out of or related to Contractor’s performance of this agreement, except that such duty to indemnify, defend and hold harmless shall not apply where injury to person or property is caused by City’s willful misconduct or sole negligence. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of the City shall be considered as "attorney's fees" for the purposes of this paragraph. 31. While not restricting or limiting the foregoing, during the term of this Agreement, Contractor shall maintain in effect policies of comprehensive public, general, and automobile liability insurance, in the amount of $1,000,000 combined single limit, and statutory worker’s compensation coverage, and shall file copies of said policies with the City’s Risk Manager prior to undertaking any work under this Agreement. The policies shall name the City as an additional insured and shall provide for ten (10) day notification to the City if said policies are terminated or materially altered. In addition Professional liability insurance appropriate to the Consultant’s profession is required. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to services performed under this Agreement. The errors and omissions liability insurance must be maintained for at least 5 consecutive years following the completion of Consultant’s services or the termination of this Agreement. During this additional 5-year period, Consultant shall annually and upon request of the City submit written evidence of this continuous coverage. 32. FAITHFUL PERFORMANCE BOND/BID BOND. The Contractor will be required to furnish a cashier’s check, certified check or faithful performance bond / bid bond made payable to the City of San Bernardino in an amount equal to 100% / 10% of the bid price to insure the contractor’s faithful performance of this contract. Said surety shall be subject to the approval of the City of San Bernardino, bonds shall be in accordance with Ordinance No. 821, Section 2400, and the corporation issuing said bond shall have a rating in Best’s most recent insurance guide of “A” or better. 33. Written contract documents, duly authorized and signed by the appropriate authority, constitute the complete and entire agreement(s) that may result from the RFP. 34. City may, at its discretion, exercise option year renewals for up to three (3) years, in one-year increments. 35. By submitting a bid, bidder warrants that any and all licenses and/or certifications required by law, statute, code or ordinance in performing under the scope and specifications of this RFP are currently held by bidder, and are valid and in full force and effect. Copies or legitimate proof of such licensure and/or certification shall be included in bidder's response. Bids lacking copies and/or proof of said licenses and/or certifications may be deemed nonresponsive and may be rejected. 36. Once the award has been made and prior to the commencement of the job, the City’s Municipal Code (M.C. 5.04.005) requires that a Business doing business with the City, obtain and maintain a valid City Business Registration Certificate during the term of the Agreement. 20.c Packet Pg. 733 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 32 of 38 37. Vendor (Contractor)/Consultant services agreement(s) (VSA/CSA). A signed vendor/Consultant service agreement may be required between both parties prior to commencement of the job. 20.c Packet Pg. 734 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 33 of 38 SECTION VIII. EXHIBIT(S) 20.c Packet Pg. 735 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 34 of 38 EXHIBIT A City of San Bernardino Vision for the Future WE ENVISION a world class city which capitalizes on its location, the diversity of its people and its economy to create a broad range of choices for its residents in how they live, work, and play. WE ENVISION a thriving city possessing a sustainable system of high-quality education, community health, public safety, housing, retail, recreation, arts and culture and infrastructure. WE ENVISION a vibrant econom y with a skilled workforce that attracts employers who seek the unique opportunities the city has to offer and provide jobs that create citywide prosperity. WE ENVISION a model community which is governed in an open and ethical manner, where all sectors work collaboratively to reach shared goals. WE ENVISION a city that is recognized as the county’s business and government center and a home for those seeking a sense of community and the best life has to offer. 20.c Packet Pg. 736 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 35 of 38 City of San Bernardino Job Statement The job of the City of San Bernardino is to create, maintain, and grow economic value in the community. 20.c Packet Pg. 737 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 36 of 38 City of San Bernardino Operating Paradigm The City of San Bernardino is a municipal corporation. The City Council functions as the elected Board of Directors of the corporation, the Mayor as the Chair of the Board, and the City Manager as the appointed CEO. The City needs revenue to pay for services and amenities and maintain the built environment. Income for the corporation comes directly or indirectly from anyone spending money in the City. They are investing in San Bernardino. Each of those investors has a choice whether to spend their money in the City of San Bernardino or another jurisdiction. Therefore, the City is in competition for that investment. The level of service, the amenities, the breadth of choices of lifestyle and the quality of life help to determine where investors will choose to spend their money. Every single interaction we have is an opportunity to win or lose that investment. 20.c Packet Pg. 738 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 37 of 38 San Bernardino Mayor and City Council 2018-2019 Goals & Objectives 1. Implement the City Vision a. Ensure that all staff members are aware of the direction provided by the Mayor and City Council through the City Vision, Goals and Objectives, Paradigm and Job Statement. b. Develop programs and operating systems to publicize, promote, support and implement the guidance provided by the Mayor and City Council. 2. Provide for the Safety of City Residents and Businesses a. Utilize City programs to reduce crime and ensure that neighborhoods and business areas are safe. b. Recruit and retain the highest caliber public safety personnel. c. Maintain or improve emergency response times. 3. Create, Maintain, and Grow Jobs and Economic Value in the City a. Provide clear policy direction, predictable decision-making, and efficient processing and program delivery to inspire confidence in investors and trust in the community. b. Emphasize business retention and expansion. c. Utilize City resources to support the local economy and maximize job creation. 4. Ensure Development of a Well-Planned, Balanced, and Sustainable City a. Provide infrastructure designed for a long term economic growth. b. Support a wide range of housing types and levels of affordability. c. Ensure that the City is clean and attractive. 5. Improve City Government Operations a. Implement the City Charter by maintaining clear roles and lines of authority. b. Develop and maintain consistent messaging. 20.c Packet Pg. 739 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative RFP F-18-19 Legislative Advocacy Services City of San Bernardino 38 of 38 c. Ensure that employees know that they and their work are valued. d. Encourage collaboration by breaking down silos within the organization. e. Evaluate operations and performance through investment in the resources, technology and tools needed to continually improve organizational efficiency and effectiveness. 6. Operate in a Fiscally Responsible and Business-Like Manner a. Continue to implement the Plan of Adjustment. b. Develop a long-term budget plan and assessment of the City’s built environment which brings City operations into both fiscal and programmatic balance, including funding of reserves for infrastructure and equipment maintenance and replacement. c. Invest City resources in ways which create more ongoing revenue to reinvest in maintaining and improving services. 7. Pursue City Goals and Objectives by Working with Other Agencies a. Work with Federal, State, and regional governments and organizations to ensure San Bernardino receives its fair share of resources. b. Maintain close working relationships with the county, tribes and other governmental agencies. 20.c Packet Pg. 740 Attachment: CM.Agreement with Joe A. Gonsalves Son. ATTACHMENT 2 (5728 : Agreement with Joe A. Gonsalves & Son for Legislative 21.a Packet Pg. 741 Attachment: CM.Special Tax Area 2006-1 - Staff Report (5730 : Resolution Suspending Special Tax for Special Tax Area 2006-1 and Establishing On July 24, 2006, the Mayor and Council adopted Resolution No. 2006-265, which established the special tax rate for the Del Rosa Island and established “Special Tax Area 2006-1” for the area. The resolution directed the City Clerk to request that the assessments for the special tax be placed on the property tax bills for the area. On August 24, 2015, the Mayor and Council adopted Resolution No. 2015-195, authorizing the filing of an application to LAFCO to initiate proceedings for annexation of all territory within the City to the San Bernardino County Fire Protection District (SBCFPD) for the provision of fire protection and emergency medical services. The City and SBCFPD thereafter applied to LAFCO to initiate the annexation proceedings. On January 27, 2016, LAFCO adopted LAFCO Resolutions Nos. 3211 and 3212, approving the initiation of the proceedings. On April 21, 2016, LAFCO held a protest hearing at which it determined that not enough protests were received to require an election on the proposed annexation, and approved the proposal. SBCFPD began providing fire protection and paramedic services to the entire City area on July 1, 2016. Discussion With SBCFPD taking over the provision of paramedic services, the City was relieved of providing those services and stopped assessing the special tax. However, staff were advised that formal dissolution of Special Tax Area 2006-1 would require that another LAFCO application be filed. Legal counsel was consulted and recommended that, instead of filing another LAFCO application, the City adopt a resolution formally suspending imposition of the special tax and establishing a tax rate of zero, for so long as the City does not provide the paramedic services. The resolution attached to this report is intended to accomplish that result. 2018-19 Goals and Objectives Adoption of the proposed resolution aligns with Goal No. 6: Operate in a fiscally responsible and business-like manner. Formalizing the suspension of the special tax in a resolution will bring the documentary record into accord with actual practice and promote organizational effectiveness and efficiency. Fiscal Impact No fiscal impact to the City; assessment of the special tax was discontinued upon SBCFPD’s assumption of the provision of paramedic services to Special Tax Area 2006-1. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2018-254 suspending imposition of the special tax established by Resolution No. 2006-265, and establishing a tax rate of zero for Special Tax Area 2006-1. Attachments Attachment 1 Resolution 8/31/2018 9:14 AM 21.a Packet Pg. 742 Attachment: CM.Special Tax Area 2006-1 - Staff Report (5730 : Resolution Suspending Special Tax for Special Tax Area 2006-1 and Establishing Ward: 7 Synopsis of Previous Council Actions: On January 9, 2006, the Mayor and City Council adopted Resolution No. 2006-10, making application to LAFCO for the annexation of the Del Rosa Island. On July 24, 2006, the Mayor and City Council adopted Resolution No. 2006-265 establishing the special tax rate for the Del Rosa Island and Special Tax Area 2006-1. On August 24, 2015, the Mayor and City Council adopted Resolution No. 2015-195, authorizing the filing of an application to LAFCO for annexation of the City to the San Bernardino County Fire Protection District. 8/31/2018 9:14 AM 21.a Packet Pg. 743 Attachment: CM.Special Tax Area 2006-1 - Staff Report (5730 : Resolution Suspending Special Tax for Special Tax Area 2006-1 and Establishing RESOLUTION NO. 2018-254 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, SUSPENDING IMPOSITION OF SPECIAL TAX AND ESTABLISHING TAX RATE OF ZERO FOR SPECIAL TAX AREA 2006-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, on May 17, 2006, the Local Agency Formation Commission of the County of San Bernardino (LAFCO) approved the annexation by the City of San Bernardino (City) of an island of unincorporated County of San Bernardino (County) territory consisting of 99.22 acres, and generally located north of Highland Avenue and east of Golden Avenue (Del Rosa Island), and detachment of the territory from certain County Service Area(s); and WHEREAS, before the annexation and detachment, paramedic services for the Del Rosa Island were provided by the County and were funded by a special tax authorized by County Service Area 38 Improvement Zone L; and WHEREAS, with the annexation and detachment, the City assumed responsibility for providing paramedic services for the Del Rosa Island; and WHEREAS, a condition of LAFCO’s approval of the annexation and detachment was that the City would succeed to the special tax authorized by County Service Area 38 Improvement Zone L upon successful completion of the annexation; and WHEREAS, consistent with the condition imposed by LAFCO, on July 24, 2006, the Mayor and City Council adopted Resolution No. 2006-265, which established a special tax rate for the Del Rosa Island, established Special Tax Area 2006-1 for the area, and directed the City Clerk to request that the assessments for the special tax be placed on the property tax bills for the area; and WHEREAS, On August 24, 2015, the Mayor and City Council adopted Resolution No. 2015-195, authorizing the filing of an application to LAFCO to initiate proceedings for annexation of all territory within the City to the San Bernardino County Fire Protection District (SBCFPD) for the provision of fire protection and emergency medical services; and WHEREAS, in 2016, LAFCO approved the proposed annexation; and 1 21.b Packet Pg. 744 Attachment: CM.Special Tax Area 2006-1 - Resolution (5730 : Resolution Suspending Special Tax for Special Tax Area 2006-1 and Establishing RESOLUTION NO. 2018-254 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, SUSPENDING IMPOSITION OF SPECIAL TAX AND ESTABLISHING TAX RATE OF ZERO FOR SPECIAL TAX AREA 2006-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, SBCFPD began providing fire protection and paramedic services to the entire City area on July 1, 2016; and WHEREAS, upon SBCFPD’s commencement of the provision of paramedic services to the City, the City ceased assessing the special tax for Special Tax Area 2006-1; and WHEREAS, adoption of this Resolution will formalize the City’s action by suspending the assessment of the special tax and setting a tax rate of zero for Special Tax Area 2006-1. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The special tax for Special Tax Area 2006-1, established by Resolution No. 2006-265, is hereby suspended subject to further action of the Mayor and City Council. SECTION 2. The special tax rate for Special Tax Area 2006-1 is hereby established as zero, subject to further action of the Mayor and City Council. SECTION 3. The City Manager or designee is hereby authorized and directed to take any further actions and execute any further documents that may be necessary to effectuate the actions provided for in this resolution. SECTION 4. This resolution shall take effect immediately upon its adoption. /// /// /// /// /// 2 21.b Packet Pg. 745 Attachment: CM.Special Tax Area 2006-1 - Resolution (5730 : Resolution Suspending Special Tax for Special Tax Area 2006-1 and Establishing RESOLUTION NO. 2018-254 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, SUSPENDING IMPOSITION OF SPECIAL TAX AND ESTABLISHING TAX RATE OF ZERO FOR SPECIAL TAX AREA 2006-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a ____________ meeting thereof, held on the _______ day of __________________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, City Clerk The foregoing Resolution is hereby approved this ________ day of ______________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: _________________________ 3 21.b Packet Pg. 746 Attachment: CM.Special Tax Area 2006-1 - Resolution (5730 : Resolution Suspending Special Tax for Special Tax Area 2006-1 and Establishing 22.a Packet Pg. 747 Attachment: CM.Cannabis.Code Revisions.Report (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San Necessary Amendments  The title of the ordinance has been amended to reflect that the ordinance is being approved by the people of the City of San Bernardino rather than the Mayor and City Council. The reference Development Code Amendment No. 18-02A has been removed.  The whereas clauses have been amended to reflect events that have occurred since the ordinance was originally approved by the City Council and to reflect that the ordinance is being approved by the people of the City of San Bernardino.  The enacting clause has been amended to comply with the language of Elections Code Section 9224.  Section 2 of the ordinance and Section 5.10.020 regarding Authority have been amended to reflect the separate authority under which the people of the City of San Bernardino may consider and approve of ordinances.  Section 5 of the ordinance has been amended to reflect that the people of the City of San Bernardino are making the land use findings.  Section 6 of the ordinance has been amended to reflect that the people of the City of San Bernardino are making the findings under CEQA.  Section 7 of the ordinance has been amended to reflect that the effective date is 10 days after the vote is declared by the City Council.  Additional language has been added to the ordinance to handle the issue of competing measures, total invalidity, and the repeal (if necessary) of previous measures and laws. Clarifying Amendments  Intervening Structures Measurements [Section 5.10.250(b)(4)] • Section 5.10.250 establishes sensitive use buffers around cannabis business properties to ensure neighborhood compatibility between the commercial cannabis activity and other uses that are likely to suffer detrimental effects. The section also preserves quality of life in residential neighborhoods by setting minimum distances between residential zones and residential uses and cannabis businesses. The distances established by Section 5.10.250 are generally measured parcel to parcel, without regard to intervening structures. The City Council created an exception to this rule that requires staff to consider the following intervening structures when measuring the distances: freeways; flood control channels; railroads; and the Santa Ana River. City staff, applying the exception, measured the parcel to parcel distance without regard to intervening structures except when the straight line would pass through one of the listed 8/31/2018 9:13 AM 22.a Packet Pg. 748 Attachment: CM.Cannabis.Code Revisions.Report (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San exceptions. In those cases, City staff measure the shortest distance between the two parcels that does not pass through the intervening structure, usually along public rights-of-way. • Additionally, for schools, state law allows local government to establish sensitive use buffer distances of less than 600 feet, but prescribes the method of measurement as parcel to parcel without regard to intervening structures. The amended language would clarify that the exception created by Section 5.10.250(b)(4) is solely for measuring sensitive uses under Section 5.10.250(b) and is not intended to create a lesser distance for state law purposes or modifying the method of measurement required by state law.  Persons Prohibited from Holding a Permit or Being Employed [Section 5.10.100] • Section 5.10.100 establishes prohibitions for certain individuals from holding commercial cannabis business permits or being employed by a commercial cannabis business. The purpose of the section is to prohibit those that have been found to have violated local or state cannabis laws, or local, state, or federal tax laws, from holding a commercial cannabis business permits or being employed at commercial cannabis businesses. At least one applicant has questioned whether the language would prohibit a person from applying for or holding a commercial cannabis business permit without due process. The section was amended prior to Council’s enactment to require an actual finding that a violation had occurred. Nonetheless, a property owner has sued the City claiming the section violates its due process rights, among other things. While the City asserts that the section is constitutional as drafted and as is currently being applied, a clarifying amendment to this section to reiterate the original intent of the section that only those found to have violated such laws are prohibited would likely assist staff with implementing the section and further assure applicants that their due process rights are protected. Additional Amendments  Number of Commercial Cannabis Business Permits [Section 5.10.080] • Section 5.10.080 establishes the maximum number of commercial cannabis business permits as a ratio to the City’s population at one permit allowed per 12,500 in population. The City’s current population allows for a total of 17 permits. Under the revised provisions, the City Council would retain the authority to amend this section to increase the number of commercial cannabis business permits available if the Council determines the need exists at some future date.  Permit Expiration [Section 5.10.110] • The term of the permit was changed from one to three years.  Signage [Section 5.10.130(I)(5)] • Deleted signage provisions contained in Chapter 5.10. 8/31/2018 9:13 AM 22.a Packet Pg. 749 Attachment: CM.Cannabis.Code Revisions.Report (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San  Change in Location Permits [Section 5.10.200(a)] • Added language to the end of the first paragraph, “except as provided below.”  Sensitive Use Buffer Distances [Section 5.10.250(b)] • Section 5.10.250 establishes sensitive use buffers around cannabis business properties to ensure neighborhood compatibility between the commercial cannabis activity and other uses that are likely to suffer detrimental effects. The section also preserves quality of life in residential neighborhoods by setting minimum distances between residential zones and residential uses and cannabis businesses. The City Council retained the authority to establish lesser distances between sensitive uses if necessary to protect public health and safety in the future.  Addressed typographic errors and made minor, non-substantive language changes that reflect the intent of the provisions approved by the City Council. Financial Impact The changes to the Commercial Cannabis Regulations will not result in a financial impact. Conclusion It is recommended that the Mayor and City Council accept for Final Reading and adopt Ordinance No. MC 1503, amending Chapter 5.10 of the San Bernardino Municipal Code pertaining to commercial cannabis activities, for first reading. Attachments Attachment 1 Ordinance No. MC 1503 Attachment 2 Redline version of Ordinance No. MC 1503 comparing the existing regulations to the proposed changes Ward(s): All Synopsis of Previous Council Actions: 8/31/2018 9:13 AM 22.a Packet Pg. 750 Attachment: CM.Cannabis.Code Revisions.Report (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. MC-1503 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING CHAPTER 5.10 OF THE SAN BERNARDINO MUNICIPAL CODE RELATED TO THE REGULATION OF COMMERCIAL CANNABIS ACTIVITIES WHEREAS, the City of San Bernardino, California (“City”) is a municipal corporation, duly organized under the Charter of the City of San Bernardino and the Constitution and laws of the State of California; and, WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance No. MC-1464 establishing regulations for commercial cannabis activities; and, WHEREAS, the Mayor and City Council desire to promote a successful business environment in the City for commercial cannabis businesses and their neighboring non- cannabis businesses; and, WHEREAS, the Mayor and City Council desire to protect the quality of life of the City’s residents by ensuring commercial cannabis businesses do not adversely affect the health, safety, and welfare of the City; and, WHEREAS, the Mayor and City Council of the City of San Bernardino have continued to engage with commercial cannabis businesses and residents during the implementation of Ordinance No. MC-1464; and, WHEREAS, based on feedback from the commercial cannabis businesses, residents, and staff, the Mayor and City Council desire to amend certain portions of San Bernardino Municipal Code Chapter 5.10 related to the regulation of commercial cannabis activities. 22.b Packet Pg. 751 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. INCORPORATION OF RECITALS The foregoing recitals set forth above are true and correct and are a substantive part of this Ordinance. SECTION 2. AUTHORITY Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the Charter of the City of San Bernardino, and State law, the Mayor and City Council of the City of San Bernardino is authorized to adopt ordinances that protect the health, safety, and welfare of its residents and businesses. SECTION 3. ADOPTION; AMENDMENT This Ordinance amends Ordinance No. MC-1464, as adopted by the Mayor and City Council on March 7, 2018. It is the intent of the Mayor and City Council that the amendments to Section 5.10.100 and 5.10.250 from the original language of Ordinance No. MC-1464 be declaratory of existing law and a restatement of the original terms. The language of those sections as originally adopted is unambiguous, but, nonetheless, those sections resulted in controversy concerning the proper interpretation of the statute soon after the ordinance’s adoption, and, therefore, the Mayor and City Council amend those sections with the intent and purpose of construing and clarifying the prior language. Chapter 10, entitled “Commercial Cannabis Activities”, of Title 5 “Business Registration and Regulations” of the San Bernardino Municipal Code is amended to read as follows: Chapter 5.10 COMMERCIAL CANNABIS ACTIVITIES Sections: 5.10.010 Purpose and Intent 5.10.020 Legal Authority 5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter 5.10.040 Compliance with Laws 5.10.050 Definitions 5.10.060 Commercial Cannabis Business Permit Required to Engage in Commercial Cannabis Business 5.10.070 Cannabis Employee Requirements 5.10.080 Maximum Number and Type of Authorized Commercial Cannabis Businesses Permitted 5.10.090 Initial Application Procedure 22.b Packet Pg. 752 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business Permit or Being Employed by a Commercial Cannabis Business 5.10.110 Expiration of Commercial Cannabis Business Permits 5.10.120 Revocation of Permits 5.10.130 Renewal Applications 5.10.140 Effect of State License Suspension, Revocation, or Termination 5.10.150 Appeals 5.10.160 Written Request for Appeal 5.10.170 Appeal Hearing 5.10.180 Commercial Cannabis Business Permittee Selection Process 5.10.190 Updated Information 5.10.200 Change in Ownership or Location 5.10.210 City Business Registration Certificate 5.10.220 Building Permits and Inspection 5.10.230 Certification from the Community Development Director 5.10.240 Right to Occupy and to Use Property 5.10.250 Location and Design of Cannabis Businesses 5.10.260 Limitations on City’s Liability 5.10.270 Records and Recordkeeping 5.10.280 Security Measures 5.10.290 Restriction on Alcohol & Tobacco Sales 5.10.300 Fees and Charges 5.10.310 Miscellaneous Operating Requirements 5.10.320 Other Operational Requirements 5.10.330 Operating Requirements for Retailer Facilities; Delivery 5.10.340 Operating Requirements for Commercial Cultivation Facilities 5.10.350 Operating Requirements for Testing Labs 5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or Distribution of Edible and Other Cannabis Products 5.10.370 Promulgation of Regulations, Standards and Other Legal Duties 5.10.380 Community Relations 5.10.390 Fees Deemed Debt to the City of San Bernardino 5.10.400 Permittee Responsible for Violations 5.10.410 Inspection and Enforcement 5.10.420 Compliance with State Regulation 5.10.430 Violations Declared a Public Nuisance 5.10.440 Each Violation a Separate Offense 5.10.450 Criminal Penalties 5.10.460 Remedies Cumulative and Not Exclusive 5.10.010 Purpose and Intent It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of medically-ill persons and provide access to cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to adult-use for persons over the age of 21 as authorized by the Control, Tax & Regulate the Adult Use Cannabis Act (“AUMA” or 22.b Packet Pg. 753 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 “Proposition 64” passed by California voters in 2016), while imposing sensible regulations on the use of land to protect the City’s residents, neighborhoods, and businesses from disproportionate and potentially deleterious negative impacts. As such, it is the purpose and intent of this Chapter to regulate the cultivation, processing, manufacturing, testing, sale, delivery, distribution and transportation of medicinal and adult-use cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the City of San Bernardino and to enforce rules and regulations consistent with State law. It is the further purpose and intent of this Chapter to require all commercial cannabis operators to obtain and renew, annually, a permit to operate within the City of San Bernardino. Nothing in this Chapter is intended to authorize the possession, use, or provision of cannabis for purposes, or in any manner, that violates state or federal law. The provisions of this Chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the City, and are in addition to any permits, licenses and approval required under State, City, or other law. 5.10.020 Legal Authority Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of MAUCRSA, any subsequent State legislation and/or regulations regarding same, and the City Charter of the City of San Bernardino, the Mayor and City Council are authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial medicinal and adult-use cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, reporting and worker protections established by the State of California, or any of its departments or divisions, shall be the minimum standards applicable in the City of San Bernardino to all commercial cannabis activity. 5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter Except as specifically authorized in this Chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation (other than as provided under Section 26090(e) of the Business and Professions Code), of cannabis or cannabis product is expressly prohibited in the City of San Bernardino. 5.10.040 Compliance with Laws Nothing in this Chapter shall be construed as authorizing any actions that violate federal, State or local law with respect to the operation of a commercial cannabis business. It shall be the responsibility of the owners, the operators, and the employees of the commercial cannabis business to ensure that the commercial cannabis business is, at all times, operating in a manner compliant with all applicable federal, State and local laws, including for as long as applicable, the Compassionate Use Act (“Prop. 215”), the Medical Marijuana Program Act (“MMPA”) and the 2008 Attorney General Guidelines for the Security and Non-Diversion of Cannabis for Medical Purposes (“AG Guidelines”) (collectively “the Medical Cannabis Collective Laws”), any subsequently enacted State law or regulatory, licensing, or 22.b Packet Pg. 754 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 certification requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the commercial cannabis business permit. 5.10.050 Definitions When used in this Chapter, the following words shall have the meanings ascribed to them as set forth herein. Any reference to California statutes includes any regulations promulgated thereunder, and is deemed to include any successor or amended version of the referenced statute or regulatory provision. (a) “A-license” means a state license issued under Division 10 of the Business and Professions Code for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendations. (b) “A-licensee” means any person holding a license under Division 10 of the Business and Professions Code for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendations. (c) “Applicant” means a person applying for a permit pursuant to this Chapter. (d) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time. (e) “Bureau” means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation. (f) “Cannabis” means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. (g) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or drug, as defined by Section 109925 of the Health and Safety Code. 22.b Packet Pg. 755 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (h) “Cannabis product” means a product containing cannabis, including, but not limited to, manufactured cannabis, - intended to be sold for use by cannabis patients in California pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the California Health and Safety Code (as the same may be amended from time-to-time) or pursuant to the Adult Use of Cannabis Act. For purposes of this Chapter, “cannabis” does not include industrial hemp as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. (i) “Canopy” means the designated area(s) at a premises, except nurseries, that will contain mature plants at any point in time. (1) Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all areas(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries; (2) Canopy may be noncontiguous but each unique area included in the total canopy calculation shall be separated by an identifiable boundary which includes, but is not limited to: interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds or garden plots; and if mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation. (j) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code. (k) “City” means the City of San Bernardino, a California Charter City. (l) “Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in this Chapter. (m) “Commercial cannabis business” means any person which engages in commercial cannabis activity. (n) “Commercial cannabis business permit” means a regulatory permit issued by the City of San Bernardino pursuant to this Chapter to a commercial cannabis business, and is required before any commercial cannabis activity may be conducted in the City. The initial permit and annual renewal of a commercial cannabis business permit is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this Chapter and any regulations adopted by the City governing the commercial cannabis activity at issue. (o) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (p) “Cultivation site” means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. (q) “Customer” means a natural person 21 year of age or over or a natural person 18 year of age or older who possesses a physician’s recommendation. 22.b Packet Pg. 756 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (r) “Day care center” has the same meaning as in Section 1596.76 of the Health and Safety Code. (s) “Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform owned and controlled by the retailer. (t) “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer. (u) “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees. (v) “Distributor” means a person holding a valid commercial cannabis business permit issued by the City of San Bernardino, and, a valid state license for distribution, required by state law to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a licensed manufacturer, for sale to a licensed retailer. (w) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. (x) "Employee" means any natural person who is employed or retained as an independent contractor by any permittee in consideration for direct or indirect monetary wages or profit, or any natural person who volunteers his or her services for an employer. (y) “Fire Department” has the same meaning as in Section 2.12.020 of this Code. (z) “Labeling” means any label or other written, printed, or graphic matter upon a cannabis product, upon its container. (aa) “License” means a permit or license issued by the State of California, or one of its departments or divisions, under Division 10 of the Business and Professions Code to engage in commercial cannabis activity, including both an A-license and an M-license, as well as a testing laboratory license. (ab) “Licensee” means any person holding a state license under Division 10 of the Business and Professions Code, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license. (ac) “Licensing authority” means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee. (ad) “Live plants” means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants. 22.b Packet Pg. 757 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (ae) “M-license” means a state license issued for commercial cannabis activity involving medicinal cannabis. (af) “M-licensee” means any person holding a license for commercial cannabis activity involving medicinal cannabis. (ag) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. (ah) “Manufactured cannabis” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application. (ai) “Manufacturer” means a person issued a valid commercial cannabis business permit by the City of San Bernardino and, a valid state license as required, that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or container. (aj) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation. (ak) “Nonvolatile solvent” means any solvent used in the extraction process that is not a volatile solvent. For purposes of this Chapter, a nonvolatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post-extraction processing. (al) “Nursery” means a person issued a valid commercial cannabis business permit from the City of San Bernardino and, a valid state license as required that produces only clones, immature plants, seeds, and other agricultural products used specifically, for the propagation and cultivation of cannabis. (am) “Operation” means any act for which a commercial cannabis business permit is required under the provisions of this Chapter, or any commercial transfer of cannabis or cannabis products. (an) “Owner” means any of the following: (1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. (2) The Executive Director of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit. 22.b Packet Pg. 758 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (4) An individual who will be participating in the direction, control, or management of the person applying for a commercial cannabis business permit or who has a financial interest in the commercial cannabis business other than a fixed lease of real property (ao) “Package” means any container or receptacle used for holding cannabis or cannabis products. (ap) “Patient” or “qualified patient” shall have the same definition as California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health & Safety Code Section 11362.5. (aq) “Permit” means a commercial cannabis business permit issued by the City of San Bernardino under this Chapter. (ar) “Permittee” means any person holding a permit under this Chapter. (as) “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. (at) “Physician’s recommendation” means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code. (au) “Premises” means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one permittee. (av) “Purchaser” means the customer who is engaged in a transaction with a permittee for purposes of obtaining cannabis or cannabis products. (aw) “Retailer” means a commercial cannabis business that offers cannabis, cannabis products, or devices for the use of cannabis or cannabis products, either individually or in any combination, for retail sale, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale, and where the operator holds a valid commercial cannabis business permit from the City of San Bernardino authorizing the operation of a retailer, and a valid state license as required by state law to operate a retailer. (ax) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title to cannabis or cannabis products are transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return by the original purchaser to the location where the product was purchased. 22.b Packet Pg. 759 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (ay) “Testing laboratory” means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; and (2) Holds a valid commercial cannabis business permit from the City and a state license as required. (az) “Transport” means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity. (ba) “Youth center” has the same meaning as in Section 11353.1 of the Health and Safety Code. (bb) “Volatile solvent” means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane. 5.10.060 Commercial Cannabis Business Permit Required to Engage in Commercial Cannabis Business (a) No person may engage in any commercial cannabis business or in any commercial cannabis activity within the City of San Bernardino including cultivation, manufacture, processing, laboratory testing, transporting, dispensing, special events, distribution, or sale of cannabis or a cannabis product unless the person (1) has a valid commercial cannabis business permit from the City of San Bernardino; (2) has a valid State Seller’s Permit; and (3) is currently in compliance with all applicable state and local laws and regulations pertaining to the commercial cannabis business and the commercial cannabis activities, including the duty to obtain a City business registration certificate and any required state licenses. Engaging in a commercial cannabis business or in any commercial cannabis activity includes establishing, owning, managing, conducting, leasing to, operating, causing, permitting, aiding, abetting, suffering or concealing the fact of such an act. (b) Until Health & Safety Code Section 11362.775, subdivision (a), is repealed, the City intends that person’s eligible to operate collectives or cooperatives under that subdivision shall be eligible to apply for a City conditional permit to conduct commercial cannabis activities, but only to the degree those activities are authorized under state law for collectives and cooperatives. When the Health & Safety Code Section 11362.775, subdivision (a), is repealed, or as soon as collectives and cooperatives are no longer permitted to engage in commercial cannabis activity without a state license under state law, any conditional permit issued to a commercial cannabis business that has not obtained a state license for the commercial cannabis activities shall expire and shall be null and void. Such businesses shall no longer be authorized to engage in any commercial cannabis activities in the City until they 22.b Packet Pg. 760 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 obtain both a City issued commercial cannabis business permit and a state license for that commercial cannabis activity. (c) No temporary events shall be permitted at a state designated fair, as that term is defined in Business and Professions Code Section 19418, subdivision (a), unless the state designated fair has complied with the requirements of subsection (a) above and the temporary event is authorized pursuant to a Development Agreement with the City of San Bernardino approved in accordance with Chapter 19.40 of this Code. Temporary events are prohibited Citywide except at a state designated fair. 5.10.070 Cannabis Employee Requirements (a) Any person who is an employee within a commercial cannabis business must be legally authorized to do so under applicable state law. (b) A commercial cannabis business shall keep the following records of each of its employees on file at the premises of the business: (1) Name, address, and phone number of the employee; (2) Age and verification of employee. A copy of a birth certificate, driver’s license, government issued identification card, passport or other proof that the applicant is at least twenty-one (21) years of age must be on file with the business; (3) A list of any crimes enumerated in California Business and Professions Code Section 26057(b)(4) for which the employee has been convicted; (4) Name, address, and contact person for all previous employers of the employee for the last ten (10) years, including, but not limited to, all employers from which the applicant was fired, resigned, or asked to leave and the reasons for such dismissal or firing; (5) The fingerprints and a recent photograph of the employee; (6) If applicable, verification that the employee is a qualified patient or primary caregiver; (d) The permittee shall provide to the Chief of Police or his/her designee, upon request, the records described above in subsection (b). The Chief of Police of his/her designee may review the records and may conduct a background check to determine whether the employee has been convicted of a crime that shows the employee: (1) Is dishonest; or (2) Has committed a felony or misdemeanor involving fraud, deceit, embezzlement; or 22.b Packet Pg. 761 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (3) Was convicted of a violent felony, a crime of moral turpitude; or (4) The illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, except for cannabis related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996. 5.10.080 Maximum Number and Type of Authorized Commercial Cannabis Businesses Permitted The number of each type of commercial cannabis business that shall be permitted to operate in the City shall be established by Resolution of the Mayor and City Council but at no time shall the total number of permits for all license types exceed one (1) permit per twelve thousand five hundred (12,500) residents of the City as determined by the most recent Population Estimates for Cities, Counties and the State Report generated by the State Department of Finance for the most recent year, unless the Mayor and City Council adopt an ordinance allowing for a greater number of total permits. (a) This Chapter is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the City. Nothing in this Chapter creates a mandate that the Mayor and City Council must issue any or all of the commercial cannabis business permits if it is determined that the applicants do not meet the standards which are established in the application requirements or further amendments to the application process or that the Mayor and City Council, upon further deliberation, determines that the issuance of any or all commercial cannabis business permits will impact the public safety, welfare or other policy concerns which may be detrimental in the issuance of these permits. (b) Each year following the Mayor and City Council’s initial award of permits, if any, or at any time in the Mayor and City Council’s discretion, the Mayor and City Council may reassess the number of commercial cannabis business permits which are authorized for issuance to each business type. The Mayor and City Council, in its discretion, may determine by Resolution that the number of each type of commercial cannabis permits should be reduced, stay the same, or be expanded. 5.10.090 Initial Application Procedure (a) The Mayor and City Council shall adopt by Resolution the procedures to govern the application process, and the manner in which the decision will ultimately be made regarding the issuance of any commercial cannabis business permit(s), which Resolution shall include or require the City Manager to provide detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to each set of review criteria (“Review Criteria”), which shall require any applicable environmental review pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code as contemplated by Business and Professions Code Section 26055, subdivision (h). The Resolution shall authorize the City Manager or his/her designee(s) to prepare the necessary forms, adopt any necessary rules to the application, regulations and processes, solicit applications, conduct 22.b Packet Pg. 762 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 initial evaluations of the applicants, and to ultimately provide a final recommendation to the Mayor and City Council. (b) At the time of filing, each applicant shall pay an application fee established by Resolution of the Mayor and City Council, to cover all costs incurred by the City in the application process. (c) After the initial review, ranking, and scoring under the Review Criteria, the City Manager or his/her designee(s) will make a recommendation to the Mayor and City Council, and the Mayor and City Council shall make a final determination in accordance with Section 5.10.180. (d) THE CITY 'S RESERVATION OF RIGHTS: The City reserves the right to reject any or all initial applications. Prior to permit issuance, the City may also modify, postpone, or cancel any request for applications, or the entire program under this Chapter, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted by law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to any other justification provided, including a failure to comply with other requirements in this Chapter, an application RISKS BEING REJECTED for any of the following reasons: (1) The application was received after the designated time and date; (2) The application did not contain the required elements, exhibits, nor organized in the required format; or (3) The application was not considered fully responsive to the request for permit application. 5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business Permit or Being Employed by a Commercial Cannabis Business (a) No person may hold a commercial cannabis business permit, or be employed by a commercial cannabis business, in the City of San Bernardino, if any of the following conditions exist: (1) The applicant, permittee, or employee has been denied a commercial cannabis business permit, or similar license, or has had such a permit or license suspended or revoked by any city, county, city and county or any state cannabis licensing authority; (2) The applicant, permittee, employee, or the owner of the property upon which the proposed commercial cannabis activity is to occur, was either convicted of, 22.b Packet Pg. 763 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 pled guilty or nolo contendere to, or has been found by the City’s Hearing Officer pursuant to Chapters 9.92 or 9.93 to be responsible for, conducting commercial cannabis activity in non-compliance with Title 19, other City of San Bernardino ordinances, codes and requirements, or state law, and they failed to discontinue operating in a timely manner; or (3) The applicant, permittee, or employee, or the owner of the property upon which the proposed commercial cannabis activity is to occur, was found by the appropriate taxing agency to have been in non-compliance with federal, state or local tax laws or failed to report income from commercial cannabis activities to federal, state, or local government in violation of law. 5.10.110 Expiration of Commercial Cannabis Business Permits Each commercial cannabis business permit issued pursuant to this Chapter shall expire three (3) years after the date of its issuance. Commercial cannabis business permits may be renewed as provided in this Chapter. 5.10.120 Revocation of Permits Commercial cannabis business permits may be suspended or revoked by the City Manager or his/her designee for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to this Chapter. 5.10.130 Renewal Applications (a) An application for renewal of a commercial cannabis business permit shall be filed at least sixty (60) calendar days prior to the expiration date of the current permit. (b) The renewal application shall contain all the information required for new applications. (c) The applicant shall pay a fee in an amount to be set by Resolution of the Mayor and City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Chapter. (d) An application for renewal of a commercial cannabis business permit shall be rejected if any of the following exists: (1) The application for renewal is filed less than sixty (60) days before the expiration of the commercial cannabis business permit. (2) The commercial cannabis business permit is suspended or revoked at the time of the application. (3) The commercial cannabis business has not been in regular and continuous operation in the four (4) months prior to the renewal application. 22.b Packet Pg. 764 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (4) The commercial cannabis business has failed to conform to the requirements of this Chapter, or of any regulations adopted pursuant to this Chapter. (5) The permittee fails or is unable to renew its State of California license. (6) If the City has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of this Chapter, of the San Bernardino Municipal Code, or of the state rules and regulations, and the City or state has determined that the violation is grounds for termination or revocation of the commercial cannabis business permit. (e) The Community Development Director or his/her designee(s) is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the Community Development Director or his/her designee(s) is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare. Appeals from the decision of the Community Development Director or his/her designee(s) shall be handled pursuant to Sections 5.10.150, 5.10.160, and 5.10.170. (f) If a renewal application is rejected, a person may file a new application pursuant to this Chapter no sooner than one (1) year from the date of the rejection. 5.10.140 Effect of State License Suspension, Revocation, or Termination Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a commercial cannabis business to operate within the City, until the State of California, or its respective department or division, reinstates or reissues the State license. Should the State of California, or any of its departments or divisions, revoke or terminate the license of a commercial cannabis business, such revocation or termination shall also revoke or terminate the ability of a commercial cannabis business to operate within the City of San Bernardino. 5.10.150 Appeals Unless specifically provided elsewhere to the contrary, any determination of the Chief of Police or Community Development Director, or the designees of either of them, may only be appealed to the City Manager, which decision shall be final. The City Manager may delegate the appeal to the City’s Administrative Law Officer (“Hearing Officer”) appointed in conformity with Chapter 9.92 of this Code, in which case, the decision of the Hearing Officer shall be final. All decisions of the Mayor and City Council, City Manager or Hearing Officer under this Chapter shall be final. All appeals shall be conducted as prescribed in this Section, Section 5.10.160 and Section 5.10.170. 22.b Packet Pg. 765 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.160 Written Request for Appeal (a) Within ten (10) calendar days after the date of the determination, an aggrieved party may appeal such determination by filing a written appeal with the City Clerk setting forth the reasons why the determination was not proper. If no appeal of a determination is made within ten (10) days of the date of the determination, the determination shall be final. (b) At the time of filing the appellant shall pay the designated appeal fee, established by Resolution of the Mayor and City Council from time to time. 5.10.170 Appeal Hearing (a) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Manager, or if the appeal has been delegated to the Hearing Officer, before the Hearing Officer. The City Manager or Hearing Officer shall hear the matter de novo, and shall conduct the hearing pursuant to the procedures set forth by the City. (b) The appeal shall be held within a reasonable time after the filing the appeal, but in no event later than ninety (90) calendar days from the date of such filing. The City shall notify the appellant of the time and location at least ten (10) calendar days prior to the date of the hearing. (c) At the hearing, the appellant may present any information they deem relevant to the determination appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. (d) At the conclusion of the hearing the City Manager or Hearing Officer may affirm, reverse or modify the decision appealed. 5.10.180 Commercial Cannabis Business Permittee Selection Process (a) The Mayor and City Council shall adopt by Resolution, a procedure guideline and Review Criteria by which the top applicants in each category of each commercial cannabis business will be presented to the Mayor and City Council for a final determination at a public hearing. (b) The top final applicants for each category may be invited to attend the Mayor and City Council meeting, only if requested by the City Manager or his/her designee where they may be expected to make a public presentation introducing their team and providing an overview of their proposal. In order to provide adequate time, presentations may be divided over more than one meeting over multiple days as determined to be necessary. (c) At least ten (10) calendar days prior to the hearing, notice of the hearing shall be sent to all property owners located within six hundred (600) feet of the proposed business locations of each of the finalists to be considered by the Mayor and City Council. 22.b Packet Pg. 766 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (d) The Mayor and City Council shall either deny or approve the final candidates and shall select the top candidates in each category of the commercial cannabis businesses. The Mayor and City Council’s decision as to the selection of the prevailing candidates shall be final. (e) Official issuance of the commercial cannabis business permit(s), however, is conditioned upon the prevailing applicant(s) obtaining all required land use approvals. Following the Mayor and City Council’s selection, the prevailing applicant(s) shall apply to the City’s Community Development Department to obtain any required land use approvals or entitlements for the permittee’s location, if any. Land use approvals shall include compliance with all applicable provisions of CEQA. The City Manager or his/her designee(s) shall formally issue the commercial cannabis business permit(s) once the Community Development Director or his/her designee(s) affirms that all of the required land use approvals have been obtained. (f) Issuance of a commercial cannabis business permit does not create a land use entitlement or serve as a building permit. The commercial cannabis business permit shall only be for a term of three (3) years, and shall expire at the end of the three (3) year period unless it is renewed as provided herein. Furthermore, no permittee may begin operations, notwithstanding the issuance of a permit, unless all of the state and local laws and regulations, including but not limited to the requirements of this Chapter, applicable building permits, and conditions of the commercial cannabis business permit, have been complied with. Until a state license is available and obtained by the permittee, this means compliance with all provisions of the Medical Cannabis Collective Laws as set forth at Section 5.10.060. (g) Notwithstanding anything in this Chapter to the contrary, the Mayor and City Council reserves the right to reject any or all applications if it determines it would be in the best interest of the City, taking into account any health, safety and welfare impacts on the community. Applicants shall have no right to a commercial cannabis business permit until a permit is actually issued, and then only for the duration of the permit term. Each applicant assumes the risk that, at any time prior to the issuance of a permit, the Mayor and City Council may terminate or delay the program created under this Chapter or otherwise revise, amend, or repeal this Chapter. (h) If an application is denied, a new application may not be filed for one (1) year from the date of the denial. (i) Each person granted a commercial cannabis business permit shall be required to pay the permit fee established by resolution of the Mayor and City Council, to cover the costs of administering the commercial cannabis business permit program created in this Chapter. 5.10.190 Updated Information Within fifteen (15) calendar days of any other change in the information provided in the application form or any change in status of compliance with the provisions of this Chapter, including any change in the commercial cannabis business location or ownership or management members, the applicant shall file an updated application form with the City 22.b Packet Pg. 767 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Manager or his/her designee(s) for review along with an application amendment fee, as set forth in section 5.10.090 and 5.10.130. 5.10.200 Change in Ownership or Location (a) The person granted a commercial cannabis business permit shall not transfer ownership or control of the permit to another person unless and until the transferee obtains an amendment to the permit from the City Manager or his/her designee stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the City Manager or his/her designee in accordance with all provisions of this Chapter (as though the transferee were applying for an original commercial cannabis business permit) accompanied by a transfer fee in an amount set by Resolution of the Mayor and City Council (or if not set, shall be the same amount as the application fee), and the City Manager or his/her designee determines, after hearing, in accordance with this Chapter that the transferee passed the background check required for permittees and meets all other requirements of this Chapter. No transfer of ownership may occur within five (5) years of the date the commercial cannabis business permit is originally issued, except as provided below. (b) Commercial cannabis business permits issued through the grant of a transfer by the City Manager or his/her designee shall be valid for a period of one year beginning on the day the City Manager or his/her designee approves the transfer of the permit. Before the transferee’s permit expires, the transferee shall apply for a renewal permit in the manner required by this Chapter. (c) Changes in ownership of a permittee’s business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than 51% of the original ownership), must be approved by the City Manager or his/her designee through the transfer process contained in subsection (a). Failure to comply with this provision is grounds for permit revocation. (d) A permittee may change the form of business entity without applying to the City Manager or his/her designee for a transfer of permit, provided that either: (1) The membership of the new business entity is substantially similar to the original permit holder business entity (at least 51% of the membership is identical), or (2) If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA and to comply with Section 5.10.060, subdivision (b), provided that the Board of Directors (or in the case of an unincorporated association, the individual(s) listed on the City permit application) of the original permittee entity are the same as the new business entity. 22.b Packet Pg. 768 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Although a transfer is not required in these two circumstances, the permit holder is required to notify the City Manager in writing of the change within ten (10) calendar days of the change. Failure to comply with this provision is grounds for permit revocation. (e) No commercial cannabis business permit may be transferred when the City Manager or his/her designee has notified the permittee that the permit has been or may be suspended or revoked. (f) Any attempt to transfer a commercial cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such a purported transfer shall be deemed a ground for revocation of the permit. (g) The location specified in the commercial cannabis business permit may not change without an amendment to the permit, processed in the same manner as an initial permit pursuant to the process and fees set forth in Section 5.10.090. 5.10.210 City Business Registration Certificate Prior to commencing operations, and at all times thereafter, a commercial cannabis business shall maintain a valid City of San Bernardino business registration certificate. 5.10.220 Building Permits and Inspection Prior to commencing operations, and at all times thereafter, a commercial cannabis business shall be subject to a mandatory building inspection, and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), Fire Department approvals, Health Department approvals and other zoning and land use permit(s) and approvals. No modifications to the structure of the premises shall be made without required approvals listed above. 5.10.230 Certification from the Community Development Director Prior to commencing operations, a commercial cannabis business must obtain a certification from the Community Development Director or his/her designee(s) certifying that the business is located on a site that meets all of the requirements of Title 19 of this Code. 5.10.240 Right to Occupy and to Use Property As a condition precedent to the City’s issuance of a commercial cannabis business permit pursuant to this Chapter, any person intending to open and to operate a commercial cannabis business shall provide sufficient evidence, which sufficiency shall be determined in the reasonable discretion of the Mayor and City Council, of the legal right to occupy and to use the proposed location for the proposed commercial cannabis activity. In the event the proposed location will be leased from another person, the applicant shall be required to provide a signed and notarized statement from all owners of the property, acknowledging that 22.b Packet Pg. 769 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the property owners have read this Chapter and consent to the operation of the commercial cannabis business on the owner’s property. 5.10.250 Location and Design of Cannabis Businesses Commercial cannabis businesses are permitted to engage in commercial cannabis activities subject to the following zoning and locational requirements: (a) The commercial cannabis business must be located on property zoned CG (Commercial General), CG -2 (Commercial General-2), CG-3 (Commercial General -3), CR- 2 (Commercial Regional-Downtown), CR-3 (Commercial-Tri-City-Club), CCS-1 (Central City South), CCS-2 (Central City), CH (Commercial Heavy), IL (Industrial Light), IH (Industrial Heavy), OIP (Office Industrial Park), or as such successor zones as may be created by the Mayor and City Council from time to time, and must meet all of the requirements for development in these zones; and (b) The property on which the cannabis business is located must also meet all of the distance requirements listed below in subsections (b)(1)-(3), unless the Mayor and City Council adopt an ordinance allowing for a lesser distance. All distances shall be the horizontal distance measured in a straight line from exterior parcel line to exterior parcel line without regard to intervening structures, except as listed in subsection (b)(4). (1) The parcel shall be no closer than six hundred (600) feet of any residentially zoned or residentially used parcel in the City, the City’s sphere of influence, a neighboring incorporated city, or unincorporated county. (2) The parcel shall be no closer than six hundred (600) feet from any parcel in the City, the City’s sphere of influence, a neighboring incorporated city, or unincorporated county containing any of the following: A. A school providing instruction in kindergarten or any grades 1 through 12, (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12) that is in existence at the time the permit is issued; B. A commercial daycare center licensed by the City, another city, or County that is in existence at the time the permit is issued; C. A youth center that is in existence at the time the permit is issued; or D. A park that is in existence at the time the permit is issued. (3) The City shall consider the proximity of the proposed commercial cannabis business to religious facilities and libraries in existence at the time the permit is granted when determining whether the issue the permit and any conditions thereto. 22.b Packet Pg. 770 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (4) For the purposes of this subsection (b), the distance measurement shall be without regard to intervening structures, with the exception of the following, in which case the distance measurement shall be the shortest path of travel around the listed intervening structures: A. Freeways; B. Flood control channels; C. Railroads; D. The Santa Ana River. (c) Each proposed cannabis business project shall: (1) Conform with the City’s general plan, any applicable specific plans, master plans, and design requirements; (2) Comply with all applicable zoning and related development standards; (3) Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties; (4) Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development; (5) Be served by highways adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate; and (6) Be provided with adequate electricity, sewage, disposal, water, fire protection and storm drain facilities for the intended purpose. 5.10.260 Limitations on City’s Liability To the fullest extent permitted by law, the City of San Bernardino shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to this Chapter or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any commercial cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive the commercial cannabis business permit: (a) They must execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the City of San Bernardino, and its elected officials, officers, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City’s issuance of the commercial cannabis business permit, the City’s 22.b Packet Pg. 771 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 decision to approve the operation of the commercial cannabis business or activity, to the process used by the City in making its decision, or the alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents. (b) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Manager or his/her designee. (c) Reimburse the City of San Bernardino for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City of San Bernardino may be required to pay as a result of any legal challenge related to the City’s approval of the applicant’s commercial cannabis business permit, or related to the City’s approval of a commercial cannabis activity. The City of San Bernardino may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder. 5.10.270 Records and Recordkeeping (a) Each person granted a commercial cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a commercial cannabis business permit issued pursuant to this Chapter), or at any time upon reasonable request of the City Manager or his/her designee, each commercial cannabis business shall file a sworn statement detailing the number of sales by the commercial cannabis business during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes paid or due to be paid, including, but not limited to, employee withholdings. On an annual basis, each permittee shall submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. At the request of the City Manager, or his/her designee, the each permittee shall provide copies of the last three (3) years of their local, state and federal tax returns so that the City may verify the information provided above. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager or his/her designee(s). (b) Each person granted a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, and agents currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the City Manager or his/her designee(s) upon a reasonable request. (c) Prior to state licensing, each commercial cannabis business shall maintain a record of all persons, patients, collectives and primary caregivers served by the commercial cannabis business, for a period of no less than four (4) years. Once a state license is obtained, the commercial cannabis business must maintain such records only to the extent permitted or required by the MAUCRSA. 22.b Packet Pg. 772 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (d) All commercial cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing and distribution processes until purchase as set forth MAUCRSA. Additionally, all commercial cannabis businesses shall maintain records that identify the source of all products (company name, location, license numbers etc.). (e) Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPAA) regulations, each commercial cannabis business shall allow the City of San Bernardino officials to have access to the business’s books, records, accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four (24) hours after receipt of the City’s request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware. 5.10.280 Security Measures (a) A commercial cannabis business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the City Manager or his/her designee(s), these security measures shall include, but shall not be limited to, all of the following: (1) Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business. (2) Establishing limited access areas accessible only to authorized commercial cannabis business personnel. (3) Except for live growing plants which are being cultivated at a cultivation facility, all cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault. All cannabis and cannabis products, including live plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss, (4) Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. Cameras shall clearly show each point of sale location, register with a time/date stamp. The commercial cannabis business shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the City Manager or his/her designee(s), and that it is 22.b Packet Pg. 773 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 compatible with the City’s software and hardware. In addition, remote and real-time, live access to the video footage from the cameras shall be provided to the City Manager or his/her designee(s). Video recordings shall be maintained for a minimum of one hundred twenty (120) days, and shall be made available to the City Manager or his/her designee(s) upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business. (5) Sensors shall be installed to detect entry and exit from all secure areas. (6) Panic buttons shall be installed in all commercial cannabis businesses. (7) Having a professionally installed, maintained, and monitored alarm system. The owner and operator shall be subject to the City’s security alarm systems requirements of Chapter 8.81 of this Code. (8) Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building as approved by the Community Development Department and Fire Department. (9) Security personnel shall be on-site 24 hours a day or alternative security as authorized by the City Manager or his/her designee(s). Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the City Manager or his/her designee(s), with such approval not to be unreasonably withheld. (10) Each commercial cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage. (b) Each commercial cannabis business shall identify a designated security representative/liaison to the City of San Bernardino, who shall be reasonably available to meet with the City Manager or his/her designee(s) regarding any security related measures or and operational issues. The commercial cannabis business shall notify the City Manager or his/her designee within twenty four (24) hours of a change in designated security representative/liaison. (c) As part of the application and permitting process each commercial cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, and any currency. (d) The commercial cannabis business shall cooperate with the City whenever the City Manager or his/her designee(s) makes a request, upon reasonable notice to the commercial cannabis business, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter. 22.b Packet Pg. 774 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (e) A commercial cannabis business shall notify the City Manager or his/her designee(s) within twenty-four (24) hours after discovering any of the following: (1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager or his/her designee(s). (2) Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business. (3) The loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the commercial cannabis business. (4) Any other breach of security. 5.10.290 Restriction on Alcohol & Tobacco Sales (a) No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages to any person, including minors, on or about the property occupied by the commercial cannabis business. (b) No person shall cause or permit the sale of tobacco products to any person, including minors, on or about the property occupied by the commercial cannabis business. 5.10.300 Fees and Charges (a) No person may commence or continue any commercial cannabis activity in the City, without timely paying in full all fees and charges required for the operation of a commercial cannabis activity. Fees and charges associated with the operation of a commercial cannabis activity shall be established by Resolution of the Mayor and City Council which may be amended from time to time. Such fees and charges may include, but are not limited to, a regulatory fee imposed for the reasonable regulatory costs to the City for issuing licenses and permits, performing investigations, inspections, and audits, and the administrative and criminal enforcement and adjudication thereof. (b) All commercial cannabis businesses authorized to operate under this Chapter shall pay all sales, use, business, employment and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each commercial cannabis business shall cooperate with City with respect to any reasonable request to audit the commercial cannabis business’ books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes required to be paid during any period. 22.b Packet Pg. 775 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.310 Miscellaneous Operating Requirements (a) Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the City. (b) On-site consumption of cannabis is prohibited at all times by all individuals on the property. (c) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time. (d) Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), time and date of each sale and other information which may be deemed necessary by the City. The commercial cannabis business shall ensure that such information is compatible with the City’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager or his/her designee(s) prior to being used by the permittee. (e) All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State and local regulations. No cannabis or cannabis products may be sold, distributed, or transferred out of the State. (f) There shall not be a physician located in or around any commercial cannabis business at any time for the purpose of evaluating patients for the issuance of a cannabis recommendation or card where applicable. (g) Prior to dispensing medicinal cannabis or medicinal cannabis products where applicable to any person, the commercial medicinal cannabis business shall obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient. (h) Emergency Contact. Each commercial cannabis business shall provide the City Manager or his/her designee(s) with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. The commercial cannabis business shall notify the City Manager or his/her designee within twenty four (24) hours of a change in the emergency contact. (i) Signage and Notices. (1) In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the 22.b Packet Pg. 776 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 requirements of Chapter 19.22 of this Code, including, but not limited to, seeking the issuance of a City sign permit. (2) No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window. (3) Each entrance to a commercial cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited. (4) Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right- of-way. (5) [Repealed] (6) In accordance with state law and regulations or as stipulated in the City of San Bernardino commercial cannabis business permit, holders of a commercial cannabis business permit shall agree that, as an express and ongoing condition of permit issuance and subsequent renewal, the holder of the permit shall be prohibited from advertising any commercial cannabis business located in the City of San Bernardino utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising, anywhere in the state. This paragraph is not intended to place limitations on the ability of a commercial cannabis business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways. (j) Minors. (1) Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least twenty-one (21) years of age. Except as provided for under section 5.10.330 (c ). (2) The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the commercial cannabis business. Except as provided for under section 5.10.330 (c ). 22.b Packet Pg. 777 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (k) Odor Control. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the Community Development Director or his/her designee(s) determine is a more effective method or technology: (1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; (2) An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business. (l) Display of Permit and City Business License. The original copy of the commercial cannabis business permit issued by the City pursuant to this Chapter and the City issued business license shall be posted inside the commercial cannabis business in a location readily- visible to the public. (m) Background Check. Every person listed as an owner, manager, or supervisor of the commercial cannabis business must submit fingerprints and other information deemed necessary by the Chief of Police or his/her designee(s) for a background check by the City of San Bernardino’s Police Department pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes City authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation. Pursuant to California Penal Sections 11105(b)(11) and 13300(b)(11), which requires that there be a requirement or exclusion from employment, licensing or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a commercial cannabis business unless they have first cleared the background check, as determined by the Chief of Police or his/her designee(s). A fee for the cost of the background investigation, which shall be the actual cost to the City of San Bernardino to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis business permit is submitted. (n) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. 22.b Packet Pg. 778 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (o) Permits and other Approvals. Prior to the establishment of any commercial cannabis business or the operation of any such business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to such commercial cannabis business. (p) If the commercial cannabis business permittee is operating as a collective or cooperative under Health and Safety Code Section 11362.775, subdivision (a), the commercial cannabis business shall terminate the membership of any member violating any of the provisions of this Chapter. (q) The interior and exterior of the premises of the commercial cannabis business shall be well lit at all times. The windows of the building shall provide an unobstructed view into the interior. 5.10.320 Other Operational Requirements The City Manager or his/her designee may develop other commercial cannabis business operational requirements or regulations as are determined to be necessary to protect the public health, safety and welfare. 5.10.330 Operating Requirements for Retailer Facilities; Delivery (a) No more than the number of retailers adopted by resolution may operate within the City of San Bernardino at any one time and no more than that number adopted by resolution shall be issued a permit by the City of San Bernardino to operate a retailer at one time. Both retailers offering storefront purchase (customers purchase and obtain cannabis onsite) and retailers offering delivery only shall be permitted. Each shall be required to maintain a physical location from which commercial cannabis activities are conducted that are permitted under this Chapter. (b) Retailers may only deliver to customers within a county or city that does not expressly prohibit delivery by ordinance. Retailers may only deliver to customers within the City of San Bernardino after obtaining a commercial cannabis business permit issued under the Chapter. Security plans developed pursuant to this chapter shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit. (c) M-licensee retailers must verify the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and that the potential customer has a valid doctor's recommendation. A-licensee retailers must verify the age of customers to ensure persons under the age of twenty-one (21) are not permitted. (d) Entrances into the retailer shall be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to the retailer to separate it from the reception/lobby area. 22.b Packet Pg. 779 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (e) Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. (f) Retailers may have only that quantity of cannabis and cannabis products reasonably anticipated to meet the daily demand readily available for sale on-site in the publically accessible retail sales area of the retailer. (g) All restroom facilities shall remain locked and under the control of management. 5.10.340 Operating Requirements for Commercial Cultivation Facilities (a) All outdoor (i.e. open air) cultivation is prohibited. The cultivation of all cannabis must occur indoors or within mixed light structures. (b) In no case, shall cannabis plants be discernable from a public or private road, sidewalk, park or any common public viewing area. (c) A permittee permitted to engage in commercial cannabis cultivation in the City of San Bernardino shall only be allowed to cultivate the square feet of canopy space permitted by state law. (d) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. (e) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife. (f) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis. (g) All applicants for a cannabis cultivation permit shall submit the following in addition to the information generally otherwise required for a commercial cannabis business: (1) A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities (indoor, mixed-light) and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting (indoor, mixed-light). (2) A description of a legal water source, irrigation plan, and projected water use. 22.b Packet Pg. 780 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (3) Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes. (4) Plan for addressing odor and other public nuisances that may derive from the cultivation site. 5.10.350 Operating Requirements for Testing Labs (a) Testing Labs shall be required to conduct all testing in a manner pursuant to Business and Professions Code Section 26100, et seq., and shall be subject to state and local law. Each Testing Lab shall be subject to additional regulations as determined from time to time as more regulations are developed under this Chapter and any subsequent State of California legislation regarding the same. (b) Testing Labs shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods. (c) Testing Labs shall obtain and maintain ISO/IEC 17025 accreditation as required by the bureau. (d) Testing Labs shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards required by the bureau unless remedial measures can bring the cannabis or cannabis products into compliance with quality standards as specified by law and implemented by the bureau. (e) Each operator of a Testing Lab shall ensure that any Testing Lab employee takes the sample of cannabis or cannabis products from the distributor’s premises for testing as required by state law and that the Testing Lab employee transports the sample to the Testing Lab. (f) Except as provided by state law, a Testing Lab shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with state law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol. (g) A Testing Lab may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A Testing Lab shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a Testing Lab for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received. 22.b Packet Pg. 781 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or Distribution of Edible and Other Cannabis Products (a) In addition to any locational restrictions contained within this Chapter, manufacturers requiring a Type-6, or Type-7 or any subsequent created manufacturing state license (using non-volatile and volatile solvents) as defined in MAUCRSA, may only be permitted to operate within those zone districts as similar manufacturing activities under Title 19 of this Code. (b) Any compressed gases used in the manufacturing process shall not be stored on any property within the City of San Bernardino in containers that exceeds the amount which is approved by Fire Department and authorized by the commercial cannabis business permit. Each site or parcel subject to a commercial cannabis business permit shall be limited to a total number of tanks as authorized by the Fire Department on the property at any time. (c) Manufacturers may use the hydrocarbons N-butane, isobutane, propane, or heptane or other solvents or gases exhibiting low to minimal potential human-related toxicity approved by both the Community Development Department and Fire Department. These solvents must be of at least ninety-nine percent purity and any extraction process must use them in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present. (d) If an extraction process uses a professional grade closed loop CO₂ gas extraction system every vessel must be certified by the manufacturer for its safe use as referenced in 5.10.360 (f). The CO₂ must be of at least ninety-nine percent purity. (e) Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number. (f) Certification from an engineer licensed by the State of California must be provided to the Community Development Department for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to: (1) The American Society of Mechanical Engineers (ASME); (2) American National Standards Institute (ANSI); (3) Underwriters Laboratories (UL); or (4) The American Society for Testing and Materials (ASTM). (g) The certification document must contain the signature and stamp of the professional engineer and serial number of the extraction unit being certified. 22.b Packet Pg. 782 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (h) Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Fire Department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes. (i) Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts. (j) Manufacturers may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere. (k) Manufacturers creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace. (l) Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store solvents and gases safely. (m) Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested. 5.10.370 Promulgation of Regulations, Standards and Other Legal Duties (a) In addition to any regulations adopted by the Mayor and City Council, the City Manager or his/her designee is authorized to establish, subject to approval by the Mayor and City Council, any additional rules, regulations and standards governing the issuance, denial or renewal of commercial cannabis business permits, the ongoing operation of commercial cannabis businesses and the City's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter. (b) Regulations shall be published on the City’s website. (c) Regulations promulgated by the City Manager or his/her designee shall become effective upon date of publication. Commercial cannabis businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager or his/her designee. (d) Testing Labs and Distribution facilities shall be subject to state law and shall be subject to additional regulations as determined from time to time as more regulations are developed under Section 5.10.350 (a) of this Chapter and any subsequent State of California legislation regarding the same. 22.b Packet Pg. 783 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.380 Community Relations (a) Each commercial cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide the above information to all businesses and residences located within one hundred (100) feet of the commercial cannabis business. The commercial cannabis business shall notify the City Manager or his/her designee within twenty four (24) hours of a change in community relations contact. (b) During the first year of operation pursuant to this Chapter, the owner, manager, and community relations representative from each commercial cannabis business holding a permit issued pursuant to this Chapter shall attend meetings with the City Manager or his/her designee(s), and other interested parties as deemed appropriate by the City Manager or his/her designee(s), to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter. After the first year of operation, the owner, manager, and community relations representative from each such commercial cannabis business shall meet with the City Manager or his/her designee(s) when and as requested by the City Manager or his/her designee(s). (c) Commercial cannabis businesses to which a permit is issued pursuant to this Chapter shall develop a City approved public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. 5.10.390 Fees Deemed Debt to the City of San Bernardino The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City of San Bernardino that is recoverable via an authorized administrative process as set forth by ordinance, or in any court of competent jurisdiction. 5.10.400 Permittee Responsible for Violations The person to whom a permit is issued pursuant to this Chapter shall be responsible for all violations of the laws of the State of California or of the regulations and/or the ordinances of the City of San Bernardino, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the commercial cannabis business whether or not said violations occur within the permittee’s presence. 5.10.410 Inspection and Enforcement (a) The City Manager, Chief of Police or designee of either of them charged with enforcing the provisions of this Chapter, or any provision thereof, may enter the location of a commercial cannabis business at any time, without notice, and inspect the location of any commercial cannabis business as well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of State law. 22.b Packet Pg. 784 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (b) It is unlawful for any person having responsibility over the operation of a commercial cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law. (c) The City Manager, Chief of Police or designee of either of them charged with enforcing the provisions of this Chapter may enter the location of a commercial cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of San Bernardino shall be logged, recorded, and maintained in accordance with established procedures by the San Bernardino Police Department or regulations adopted pursuant to the authority of this Chapter. 5.10.420 Compliance with State Regulation It is the stated intent of this Chapter to regulate commercial cannabis activity in the City of San Bernardino in compliance with all provisions MAUCRSA and any subsequent state legislation. 5.10.430 Violations declared a public nuisance Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a public nuisance and may be summarily abated by the City Manager, Chief of Police, or designee of either of them. The City may recover any nuisance abatement costs and/or administrative fines relating to such violations in accordance with Government Code Sections 38773.1 and 38773.5 in accordance with Chapter 8.30 of this Code. 5.10.440 Each violation a separate offense Each and every violation of this Chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City of San Bernardino. Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relief, any permit issued pursuant to this Chapter being deemed null and void, disgorgement and payment to the City for any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. The City of San Bernardino may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the commercial cannabis business or persons related to, or associated with, the commercial cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the City Manager, Chief of Police or designee of either of them, may take immediate action to temporarily suspend a commercial cannabis business permit issued by the City, pending a hearing before the City Manager, or his/her designee(s). 22.b Packet Pg. 785 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.450 Criminal Penalties Any person causing, permitting, aiding, abetting, suffering or concealing a violation of this Chapter shall be guilty of a misdemeanor, and may, in the discretion of the City Attorney, be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment in the city or county jail for a period of not more than six (6) months, or by both such fine and imprisonment. The City Attorney, in his or her sound discretion, may prosecute a violation of this Chapter as an infraction, rather than a misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to an infraction. Any person convicted of an infraction under this provisions of this Chapter shall be punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine not exceeding two hundred dollars ($200) for a second violation within one year, and a fine not exceeding five hundred dollars ($500) for a third violation within one year. A fourth violation of this Chapter within one year shall be charged as a misdemeanor and may not be reduced to an infraction. Each day a violation is committed or permitted to continue shall constitute a separate offense. 5.10.460 Remedies cumulative and not exclusive The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law. SECTION 4. REPEAL All previous ordinances related to the establishment and operation of commercial cannabis activities within the City of San Bernardino, and to the extent that such ordinances may be in force before or at the time this Ordinance takes effect, including, without limitation, the moratorium established by Ordinance No. MC-1452, are hereby repealed and shall be of no further effect from the effective date of this Ordinance. SECTION 5. ADDITIONAL FINDINGS 5.1 GENERAL PLAN The Ordinance is consistent with the General Plan. The Mayor and City Council of the City of San Bernardino find that the Ordinance is consistent with the General Plan. The Ordinance proposes a comprehensive regulatory system for commercial cannabis activities. The regulations include numerical, locational, design, operating, security and sensitive-use distance regulations on commercial cannabis activities. The Ordinance includes review and recommendations of applications for commercial cannabis activities, which will be overseen by the City Manager, and will include the Police Department and Planning Division of the Community Development Department. The Ordinance is also consistent with the following General Plan goals and policies: Policy 2.2.8 requires the City to control the location and number of community-sensitive uses, such as alcohol sales, adult bookstores and businesses, game arcades, and similar 22.b Packet Pg. 786 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 uses based on proximity to residences, schools, religious facilities, and parks. The Ordinance establishes a maximum number of permitted commercial cannabis activities within the City. The Ordinance also establishes locational restrictions, including zoning and distance restrictions. The Ordinance establishes a distance buffer between commercial cannabis activities and residential zones and uses. The Ordinance establishes a distance buffer between commercial cannabis activities and schools, daycare centers, youth centers, and parks. The discretionary approval process within the Ordinance allows the City to consider the proximity of a proposed location to other community-sensitive uses such as religious facilities and libraries when determining whether to approve an application for a permit under the Ordinance. Policy 2.2.9 requires the Police Department review uses that may be characterized by high levels of noise, nighttime patronage, and/or rates of crime; providing for the conditioning or control of use to prevent adverse impacts on adjacent residences, schools, religious facilities, and similar “sensitive” uses. The Police Department has been involved in the development of the Ordinance to ensure that the Ordinance contains adequate regulations that prevent adverse impacts on adjacent “sensitive” uses. The Ordinance contains regulations mandating minimum security measures, including security cameras, panic buttons, monitored alarm systems, and on site security guards. The application process adopted by the Mayor and City Council of the City of San Bernardino pursuant to the Ordinance will allow for the Police Department to review applications and provide recommendations to the City Manager. The Police Department’s review will be incorporated into the City Manager’s final recommendation to the Mayor and City Council on whether to approve a permit application. The Mayor and City Council may reject any application if it determines rejection would be in the best interests of the City, taking into account any health, safety and welfare impacts on the community. Policy 2.2.10 requires the City to protect the quality of life during the review of projects. The City is required to use its discretion to deny or requirement mitigation of projects that result in impacts that outweigh the benefits to the public. The Mayor and City Council may reject any application that it determines rejection would be in the best interests of the City, taking into account any health, safety and welfare impacts on the community. Additionally, as a discretionary approval, the Ordinance authorizes the Mayor and City Council to condition its approval of a permit to mitigate the negative effects of a commercial cannabis activity. 22.b Packet Pg. 787 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.2 PUBLIC HEALTH, SAFETY AND WELFARE The Ordinance is not detrimental to the public interest, health, safety, convenience, or welfare. There are a high number of unpermitted commercial cannabis businesses currently operating in the City of San Bernardino. The unpermitted commercial cannabis businesses have caused significant public health, safety and welfare concerns as discussed in the recitals above. The Ordinance addresses those public health, safety and welfare concerns by limiting the number and location of the commercial cannabis activities and imposing operating conditions that will ensure that qualified patients and persons over 21 years of age have safe access to cannabis while maintaining the quality of life for the City’s residents. The Ordinance is not detrimental to the public interest, health, safety, convenience, or welfare. 5.3 BALANCE OF LAND USES The Ordinance would maintain the appropriate balance of land uses within the City. The Ordinance limits the location of commercial cannabis activities to specified zones within the City and establishes distance buffers from sensitive-uses. The Ordinance includes numerical restrictions on the total number of permitted commercial cannabis activities to ensure that the land uses in the City remain balanced. The Ordinance includes discretionary approval which allows the Mayor and City Council to consider the balance of land uses when considering the approval of an application. 5.4 SUITABILITY The subject parcel(s) are physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested land use designation(s) and the anticipated land use development(s). The Ordinance includes discretionary approval which allows the Mayor and City Council to consider the suitability of the property proposed in each application for the proposed commercial cannabis activity. The zoning restrictions included within the Ordinance were selected because those zones are the most likely to contain suitable properties for the establishment of commercial cannabis activities. SECTION 6. ENVIRONMENTAL DETERMINATION The Mayor and City Council of the City of San Bernardino, California, hereby find and determine that this Ordinance is not subject to environmental review under the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); Section 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has no potential for resulting in a physical change of the environment, directly or indirectly; and Business and Professions Code Section 26055(h) because the Ordinance requires the discretionary review of permits to include any applicable environmental review pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code. 22.b Packet Pg. 788 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 7. EFFECTIVE DATE This Ordinance shall be effective upon the thirty-first (31st) day following its final passage by a majority vote of the Mayor and City Council. SECTION 8. SEVERABILITY While it is the intent of Mayor and City Council of the City of San Bernardino to adopt a comprehensive regulatory system for commercial cannabis activities within the City of San Bernardino, if any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are severable. The Mayor and City Council of the City of San Bernardino declare that they would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. /// /// /// 22.b Packet Pg. 789 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060815.1 Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING CHAPTER 5.10 OF THE SAN BERNARDINO MUNICIPAL CODE RELATED TO THE REGULATION OF COMMERCIAL CANNABIS ACTIVITIES I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and City Council of the City of San Bernardino at a _______________________ meeting thereof, held on the _____ day of ______________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, CMC, City Clerk The foregoing Ordinance is hereby approved this _____ day of __________________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By:____________________ 22.b Packet Pg. 790 Attachment: CM.Cannabis.Code Revisions.Ordinance (5729 : Final Reading of Ordinance No. MC-1503 - Amending Chapter 5.10 of the San 00060808.1 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. __________MC-1503 AN ORDINANCE OF THE PEOPLE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, REENACTING AND AMENDING CHAPTER 5.10 OF THE SAN BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF COMMERCIAL CANNABIS ACTIVITIES WHEREAS, the City of San Bernardino, California (“City”) is a municipal corporation, duly organized under the Charter of the City of San Bernardino and the Constitution and laws of the State of California; and, WHEREAS, at the General Election held on November 5, 1996, California voters approved Proposition 215, commonly known as the “Compassionate Use Act of 1996” (“CUA”) with the purpose of allowing medical patients to cultivate and use cannabis without fear of State prosecution; and, WHEREAS, on January 1, 2004, Senate Bill 420 (codified as Health and Safety Code Sections 11362.7, et seq., entitled the “Medical Marijuana Program Act” (“MMPA”) went into effect and was enacted to clarify the scope of the CUA and to allow cities and counties to adopt and enforce regulations consistent with the CUA and MMPA; and, WHEREAS, on October 9, 2015, Governor Brown approved a series of bills commonly known as the “Medical Cannabis Regulation and Safety Act” (“MCRSA”) establishing a comprehensive State licensing and regulatory framework for the cultivation, manufacture, transportation, storage, distribution, and sale of medical cannabis; and which recognizes the authority of local jurisdictions to either impose additional restrictions or prohibit certain activities related to the cultivation, manufacture, transportation, storage, distribution, delivery, and sale of medical cannabis; and, WHEREAS, at the General Election held on November 8, 2016, California voters approved Proposition 64, commonly known as the “Control, Regulate and Tax Adult Use of 22.c Packet Pg. 791 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Marijuana Act” (“AUMA”), establishing a comprehensive State licensing and regulatory framework for the cultivation, manufacture, transportation, storage, distribution, and sale of recreational cannabis, and which recognizes the authority of local jurisdictions to either impose additional restrictions or prohibit certain activities related to the cultivation, manufacture, transportation, storage, distribution, delivery, and sale of recreational cannabis; and, WHEREAS, on June 27, 2017, Governor Brown approved Senate Bill 94, commonly known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) harmonizing MCRSA and AUMA into a single comprehensive State licensing and regulatory framework for both medical and recreational cannabis activities; and WHEREAS, at the General Election held on November 8, 2016, San Bernardino voters approved Measure O with 26,037 votes and 55.12% approval, and defeated competing Measures N and P, with the intent on establishing a comprehensive local licensing and regulatory framework for the cultivation, manufacture, transportation, storage, distribution, and sale of medical and recreational cannabis in the City of San Bernardino; and WHEREAS, the Superior Court for the State of California has rendered a Final Judgement determining that Measure O is invalid in the following cases: Kush Concepts, et al., v. City of San Bernardino, Superior Court Case No. CIVDS 1702131; Quiang Ye, et al., v. City of San Bernardino, et al., Superior Court Case No. CIVDS 1704276; Karmel Roe v. City of San Bernardino, et al., Superior Court Case No. CIVDS 1712424; and, WHEREAS, on December 20, 2017, the Mayor and City Council, anticipating Measure O being invalidated, and seeking to protect the City’s authority to regulate commercial medical and recreational cannabis activities, adopted Ordinance No. MC-1452, establishing a moratorium prohibiting all land use entitlements, building permits, business 22.c Packet Pg. 792 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 licenses and any other applicable approval or decisions for unregulated commercial marijuana activities that would take effect upon Measure O’s invalidation; and, WHEREAS, on January 22, 2018, the Mayor and City Council opened a duly noticed public hearing on an extension of the moratorium; and, WHEREAS, on January 22, 2018, the Mayor and City Council continued the public hearing to February 1, 2018 to have additional time for public comment; and, WHEREAS, on February 1, 2018, the Mayor and City Council by a vote of 7-0 voted to extend the moratorium 10 months and 15 days to December 18, 2018; and, WHEREAS, on February 1, 2018, the Mayor and City Council directed City staff to expeditiously prepare regulations for commercial cannabis activities within the City of San Bernardino; and, WHEREAS, on February 20, 2018, the Mayor and City Council introduced Ordinance No. MC-1464 for first reading, which established a comprehensive regulatory scheme for commercial cannabis activities; and, WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance No. MC-1464 establishing regulations for commercial cannabis activities; and, WHEREAS, commercial cannabis businesses that have operated unpermitted within the City and elsewhere have caused significant public safety problems, including but not limited to: burglaries and takeover robberies of cannabis businesses, robberies of customers leaving cannabis businesses, increases in crime (especially theft and robberies) in the vicinity of cannabis businesses, offensive odors, illegal re-selling of cannabis obtained from cannabis businesses, physicians issuing apparently fraudulent recommendations for the use of cannabis, cannabis businesses staff selling cannabis to customers with obviously counterfeit patient identification cards, street dealers attempting to sell cannabis to cannabis businesses 22.c Packet Pg. 793 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 customers, cannabis businesses customers using cannabis and then driving under the influence of cannabis, the sale of illegal drugs other than cannabis in the cannabis businesses, sales of cannabis to minors, illegal firearms possessed by felons within cannabis businesses, health and safety violations within cannabis businesses related to the City’s Fire and Building Codes; and, WHEREAS, there is a need to adopt health, safety and welfare regulations to avoid adverse impacts on the City’s residents and businesses that may arise from commercial cannabis activities; and, WHEREAS, an effective regulatory system governing commercial cannabis activities in the City of San Bernardino, as provided in this Ordinance, will address potential adverse impacts to the public health, welfare, and safety, thereby allowing commercial cannabis activities in a manner consistent with State law; and, WHEREAS, the people of theMayor and City Council City of San Bernardino desire to promote a successful business environment in the City for commercial cannabis businesses and their neighboring non-cannabis businesses; and, WHEREAS, the Mayor and City Council desire to protect the quality of life of the City’s residents by ensuring commercial cannabis businesses do not adversely affect the health, safety, and welfare of the City; and, WHEREAS, the people of the City of San Bernardino desire to ensure workers for commercial cannabis businesses are treated and paid fairly; and, WHEREAS, the people of the City of San Bernardino desire to protect the environment within the City by promoting beneficial uses of water and protecting clean air; and, 22.c Packet Pg. 794 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the reliability of the electricity system within the City is stressed during peak usage times, especially during the summer months, impacting the health, safety, and welfare of the residents that may not have adequate access to cooling; and, WHEREAS, commercial cannabis activities, especially cultivation, require significant amounts of water and electricity, and have the potential to negatively affect air quality; and, WHEREAS, local regulation on commercial cannabis activity requires the balancing of numerous competing interests, including: the interests of the industry in have a favorable business and investment environment; the interests of business and property owners in protecting their property values; the interests of the residents in neighborhoods with high quality of life; the interests of workers in their working conditions; the interests of patients in access to cannabis for medical reasons; the interests in protecting vulnerable populations such as seniors; the interest in protecting the environment and scarce resources and the interests in law enforcement in protecting the public safety of our City; and, WHEREAS, the people Mayor and City Council of the City of San Bernardino have continued to engaged with commercial cannabis businesses andthe residentselected officials of the City Council through committees, workshops, and public hearings to consider and weigh these competing interests to develop an Ordinance that best serves the public interestduring the implementation of Ordinance No. MC-1464; and, WHEREAS, the City will need to consider adoption of necessary fees to raise sufficient revenue to enforce the provisions of this Ordinance; and, WHEREAS, federal law, codified at 21 U.S.C. Sections 801 et seq., entitled the “Controlled Substances Act” (“CSA”) makes it unlawful to manufacture, distribute, or possess any controlled substances, including cannabis, which has, as a Schedule I drug under the 22.c Packet Pg. 795 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CSA, been determined by the federal government to have a high potential for abuse and no accepted medical value in treatment; and, WHEREAS, nothing in this Ordinance is intended to authorize the possession, use, or provision of cannabis for purposes that violate federal lawbased on feedback from the commercial cannabis businesses, residents, and staff, the Mayor and City Council desire to amend certain portions of San Bernardino Municipal Code Chapter 5.10 related to the regulation of commercial cannabis activities. NOW, THEREFORE, THE PEOPLE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. INCORPORATION OF RECITALS The foregoing recitals set forth above are true and correct and are a substantive part of this Ordinance. SECTION 2. AUTHORITY Pursuant to Sections 11 5 and 7 of Article II XI of the California Constitution, the Charter of the City of San Bernardino, and State law, the people Mayor and City Council of the City of San Bernardino may exerciseis authorized the power to adopt ordinances by initiativethat protect the health, safety, and welfare of its residents and businesses. SECTION 3. ADOPTION; REENACTMENT; AMENDMENT This Ordinance amends and reenacts in its entirety Ordinance No. MC-1464, as adopted by the Mayor and City Council on March 7, 2018. It is the intent of the people Mayor and City Council of the City of San Bernardino that the amendments to Section 5.10.100 and 5.10.250 from the original language of Ordinance No. MC-1464 be declaratory of existing law and a restatement of the original terms. The language of those sections as originally adopted is unambiguous, but, nonetheless, those sections resulted in controversy concerning the proper interpretation of the statute soon after the ordinance’s adoption, and, therefore, the people Mayor and City Council of the City of San Bernardino amend those sections with the intent and purpose of construing and clarifying the prior language. 22.c Packet Pg. 796 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Chapter 10, entitled “Commercial Cannabis Activities”, of Title 5 “Business Registration and Regulations” of the San Bernardino Municipal Code is approved and reenacted amended to read as follows: Chapter 5.10 COMMERCIAL CANNABIS ACTIVITIES Sections: 5.10.010 Purpose and Intent 5.10.020 Legal Authority 5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter 5.10.040 Compliance with Laws 5.10.050 Definitions 5.10.060 Commercial Cannabis Business Permit Required to Engage in Commercial Cannabis Business 5.10.070 Cannabis Employee Requirements 5.10.080 Maximum Number and Type of Authorized Commercial Cannabis Businesses Permitted 5.10.090 Initial Application Procedure 5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business Permit or Being Employed by a Commercial Cannabis Business 5.10.110 Expiration of Commercial Cannabis Business Permits 5.10.120 Revocation of Permits 5.10.130 Renewal Applications 5.10.140 Effect of State License Suspension, Revocation, or Termination 5.10.150 Appeals 5.10.160 Written Request for Appeal 5.10.170 Appeal Hearing 5.10.180 Commercial Cannabis Business Permittee Selection Process 5.10.190 Updated Information 5.10.200 Change in Ownership or Location 5.10.210 City Business Registration Certificate 5.10.220 Building Permits and Inspection 5.10.230 Certification from the Community Development Director 5.10.240 Right to Occupy and to Use Property 5.10.250 Location and Design of Cannabis Businesses 5.10.260 Limitations on City’s Liability 5.10.270 Records and Recordkeeping 5.10.280 Security Measures 5.10.290 Restriction on Alcohol & Tobacco Sales 5.10.300 Fees and Charges 5.10.310 Miscellaneous Operating Requirements 5.10.320 Other Operational Requirements 5.10.330 Operating Requirements for Retailer Facilities; Delivery 5.10.340 Operating Requirements for Commercial Cultivation Facilities 5.10.350 Operating Requirements for Testing Labs 22.c Packet Pg. 797 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or Distribution of Edible and Other Cannabis Products 5.10.370 Promulgation of Regulations, Standards and Other Legal Duties 5.10.380 Community Relations 5.10.390 Fees Deemed Debt to the City of San Bernardino 5.10.400 Permittee Responsible for Violations 5.10.410 Inspection and Enforcement 5.10.420 Compliance with State Regulation 5.10.430 Violations Declared a Public Nuisance 5.10.440 Each Violation a Separate Offense 5.10.450 Criminal Penalties 5.10.460 Remedies Cumulative and Not Exclusive 5.10.010 Purpose and Intent It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of medically-ill persons and provide access to cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to adult-use for persons over the age of 21 as authorized by the Control, Tax & Regulate the Adult Use Cannabis Act (“AUMA” or “Proposition 64” passed by California voters in 2016), while imposing sensible regulations on the use of land to protect the City’s residents, neighborhoods, and businesses from disproportionate and potentially deleterious negative impacts. As such, it is the purpose and intent of this Chapter to regulate the cultivation, processing, manufacturing, testing, sale, delivery, distribution and transportation of medicinal and adult-use cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the City of San Bernardino and to enforce rules and regulations consistent with State law. It is the further purpose and intent of this Chapter to require all commercial cannabis operators to obtain and renew, annually, a permit to operate within the City of San Bernardino. Nothing in this Chapter is intended to authorize the possession, use, or provision of cannabis for purposes, or in any manner, that violates state or federal law. The provisions of this Chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the City, and are in addition to any permits, licenses and approval required under State, City, or other law. 5.10.020 Legal Authority Pursuant to Sections 11 5 and 7 of Article II XI of the California Constitution, the provisions of MAUCRSA, any subsequent State legislation and/or regulations regarding same, and the City Charter of the City of San Bernardino, the people Mayor and City Council of the City of San Bernardino may exercise the powerare authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial medicinal and adult-use cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, reporting and worker protections established by the State of California, or any of its departments or divisions, shall be the minimum standards applicable in the City of San Bernardino to all commercial cannabis activity. 22.c Packet Pg. 798 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter Except as specifically authorized in this Chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation (other than as provided under Section 26090(e) of the Business and Professions Code), of cannabis or cannabis product is expressly prohibited in the City of San Bernardino. 5.10.040 Compliance with Laws Nothing in this Chapter shall be construed as authorizing any actions that violate federal, State or local law with respect to the operation of a commercial cannabis business. It shall be the responsibility of the owners, the operators, and the employees of the commercial cannabis business to ensure that the commercial cannabis business is, at all times, operating in a manner compliant with all applicable federal, State and local laws, including for as long as applicable, the Compassionate Use Act (“Prop. 215”), the Medical Marijuana Program Act (“MMPA”) and the 2008 Attorney General Guidelines for the Security and Non-Diversion of Cannabis for Medical Purposes (“AG Guidelines”) (collectively “the Medical Cannabis Collective Laws”), any subsequently enacted State law or regulatory, licensing, or certification requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the commercial cannabis business permit. 5.10.050 Definitions When used in this Chapter, the following words shall have the meanings ascribed to them as set forth herein. Any reference to California statutes includes any regulations promulgated thereunder, and is deemed to include any successor or amended version of the referenced statute or regulatory provision. (a) “A-license” means a state license issued under Division 10 of the Business and Professions Code for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendations. (b) “A-licensee” means any person holding a license under Division 10 of the Business and Professions Code for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendations. (c) “Applicant” means a person applying for a permit pursuant to this Chapter. (d) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time. (e) “Bureau” means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation. 22.c Packet Pg. 799 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (f) “Cannabis” means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. (g) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or drug, as defined by Section 109925 of the Health and Safety Code. (h) “Cannabis product” means a product containing cannabis, including, but not limited to, manufactured cannabis, - intended to be sold for use by cannabis patients in California pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the California Health and Safety Code (as the same may be amended from time-to-time) or pursuant to the Adult Use of Cannabis Act. For purposes of this Chapter, “cannabis” does not include industrial hemp as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. (i) “Canopy” means the designated area(s) at a premises, except nurseries, that will contain mature plants at any point in time. (1) Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all areas(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries; (2) Canopy may be noncontiguous but each unique area included in the total canopy calculation shall be separated by an identifiable boundary which includes, but is not limited to: interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds or garden plots; and if mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation. (j) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code. (k) “City” means the City of San Bernardino, a California Charter City. (l) “Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in this Chapter. (m) “Commercial cannabis business” means any person which engages in commercial cannabis activity. 22.c Packet Pg. 800 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (n) “Commercial cannabis business permit” means a regulatory permit issued by the City of San Bernardino pursuant to this Chapter to a commercial cannabis business, and is required before any commercial cannabis activity may be conducted in the City. The initial permit and annual renewal of a commercial cannabis business permit is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this Chapter and any regulations adopted by the City governing the commercial cannabis activity at issue. (o) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (p) “Cultivation site” means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. (q) “Customer” means a natural person 21 year of age or over or a natural person 18 year of age or older who possesses a physician’s recommendation. (r) “Day care center” has the same meaning as in Section 1596.76 of the Health and Safety Code. (s) “Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform owned and controlled by the retailer. (t) “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer. (u) “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees. (v) “Distributor” means a person holding a valid commercial cannabis business permit issued by the City of San Bernardino, and, a valid state license for distribution, required by state law to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a licensed manufacturer, for sale to a licensed retailer. (w) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. (x) "Employee" means any natural person who is employed or retained as an independent contractor by any permittee in consideration for direct or indirect monetary wages or profit, or any natural person who volunteers his or her services for an employer. (y) “Fire Department” has the same meaning as in Section 2.12.020 of this Code. (z) “Labeling” means any label or other written, printed, or graphic matter upon a cannabis product, upon its container. 22.c Packet Pg. 801 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (aa) “License” means a permit or license issued by the State of California, or one of its departments or divisions, under Division 10 of the Business and Professions Code to engage in commercial cannabis activity, including both an A-license and an M-license, as well as a testing laboratory license. (ab) “Licensee” means any person holding a state license under Division 10 of the Business and Professions Code, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license. (ac) “Licensing authority” means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee. (ad) “Live plants” means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants. (ae) “M-license” means a state license issued for commercial cannabis activity involving medicinal cannabis. (af) “M-licensee” means any person holding a license for commercial cannabis activity involving medicinal cannabis. (ag) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. (ah) “Manufactured cannabis” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application. (ai) “Manufacturer” means a person issued a valid commercial cannabis business permit by the City of San Bernardino and, a valid state license as required, that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or container. (aj) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation. (ak) “Nonvolatile solvent” means any solvent used in the extraction process that is not a volatile solvent. For purposes of this Chapter, a nonvolatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post-extraction processing. 22.c Packet Pg. 802 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (al) “Nursery” means a person issued a valid commercial cannabis business permit from the City of San Bernardino and, a valid state license as required that produces only clones, immature plants, seeds, and other agricultural products used specifically, for the propagation and cultivation of cannabis. (am) “Operation” means any act for which a commercial cannabis business permit is required under the provisions of this Chapter, or any commercial transfer of cannabis or cannabis products. (an) “Owner” means any of the following: (1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. (2) The Executive Director of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit. (4) An individual who will be participating in the direction, control, or management of the person applying for a commercial cannabis business permit or who has a financial interest in the commercial cannabis business other than a fixed lease of real property (ao) “Package” means any container or receptacle used for holding cannabis or cannabis products. (ap) “Patient” or “qualified patient” shall have the same definition as California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health & Safety Code Section 11362.5. (aq) “Permit” means a commercial cannabis business permit issued by the City of San Bernardino under this Chapter. (ar) “Permittee” means any person holding a permit under this Chapter. (as) “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. (at) “Physician’s recommendation” means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code. (au) “Premises” means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one permittee. (av) “Purchaser” means the customer who is engaged in a transaction with a permittee for purposes of obtaining cannabis or cannabis products. 22.c Packet Pg. 803 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (aw) “Retailer” means a commercial cannabis business that offers cannabis, cannabis products, or devices for the use of cannabis or cannabis products, either individually or in any combination, for retail sale, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale, and where the operator holds a valid commercial cannabis business permit from the City of San Bernardino authorizing the operation of a retailer, and a valid state license as required by state law to operate a retailer. (ax) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title to cannabis or cannabis products are transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return by the original purchaser to the location where the product was purchased. (ay) “Testing laboratory” means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; and (2) Holds a valid commercial cannabis business permit from the City and a state license as required. (az) “Transport” means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity. (ba) “Youth center” has the same meaning as in Section 11353.1 of the Health and Safety Code. (bb) “Volatile solvent” means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane. 5.10.060 Commercial Cannabis Business Permit Required to Engage in Commercial Cannabis Business (a) No person may engage in any commercial cannabis business or in any commercial cannabis activity within the City of San Bernardino including cultivation, manufacture, processing, laboratory testing, transporting, dispensing, special events, distribution, or sale of cannabis or a cannabis product unless the person (1) has a valid commercial cannabis business permit from the City of San Bernardino; (2) has a valid State Seller’s Permit; and (3) is currently in compliance with all applicable state and local laws and regulations pertaining to the commercial cannabis business and the commercial cannabis activities, including the duty to obtain a City business registration certificate and any required state licenses. Engaging in a commercial cannabis business or in any commercial cannabis activity includes establishing, 22.c Packet Pg. 804 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 owning, managing, conducting, leasing to, operating, causing, permitting, aiding, abetting, suffering or concealing the fact of such an act. (b) Until Health & Safety Code Section 11362.775, subdivision (a), is repealed, the City intends that person’s eligible to operate collectives or cooperatives under that subdivision shall be eligible to apply for a City conditional permit to conduct commercial cannabis activities, but only to the degree those activities are authorized under state law for collectives and cooperatives. When the Health & Safety Code Section 11362.775, subdivision (a), is repealed, or as soon as collectives and cooperatives are no longer permitted to engage in commercial cannabis activity without a state license under state law, any conditional permit issued to a commercial cannabis business that has not obtained a state license for the commercial cannabis activities shall expire and shall be null and void. Such businesses shall no longer be authorized to engage in any commercial cannabis activities in the City until they obtain both a City issued commercial cannabis business permit and a state license for that commercial cannabis activity. (c) No temporary events shall be permitted at a state designated fair, as that term is defined in Business and Professions Code Section 19418, subdivision (a), unless the state designated fair has complied with the requirements of subsection (a) above and the temporary event is authorized pursuant to a Development Agreement with the City of San Bernardino approved in accordance with Chapter 19.40 of this Code. Temporary events are prohibited Citywide except at a state designated fair. 5.10.070 Cannabis Employee Requirements (a) Any person who is an employee within a commercial cannabis business must be legally authorized to do so under applicable state law. (b) A commercial cannabis business shall keep the following records of each of its employees on file at the premises of the business: (1) Name, address, and phone number of the employee; (2) Age and verification of employee. A copy of a birth certificate, driver’s license, government issued identification card, passport or other proof that the applicant is at least twenty-one (21) years of age must be on file with the business; (3) A list of any crimes enumerated in California Business and Professions Code Section 26057(b)(4) for which the employee has been convicted; (4) Name, address, and contact person for all previous employers of the employee for the last ten (10) years, including, but not limited to, all employers from which the applicant was fired, resigned, or asked to leave and the reasons for such dismissal or firing; (5) The fingerprints and a recent photograph of the employee; 22.c Packet Pg. 805 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (6) If applicable, verification that the employee is a qualified patient or primary caregiver; (d) The permittee shall provide to the Chief of Police or his/her designee, upon request, the records described above in subsection (b). The Chief of Police of his/her designee may review the records and may conduct a background check to determine whether the employee has been convicted of a crime that shows the employee: (1) Is dishonest; or (2) Has committed a felony or misdemeanor involving fraud, deceit, embezzlement; or (3) Was convicted of a violent felony, a crime of moral turpitude; or (4) The illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, except for cannabis related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996. 5.10.080 Maximum Number and Type of Authorized Commercial Cannabis Businesses Permitted The number of each type of commercial cannabis business that shall be permitted to operate in the City shall be established by Resolution of the Mayor and City Council but at no time shall the total number of permits for all license types exceed one (1) permit per twelve thousand five hundred (12,500) residents of the City as determined by the most recent Population Estimates for Cities, Counties and the State Report generated by the State Department of Finance for the most recent year, unless the Mayor and City Council adopt an ordinance allowing for a greater number of total permits. (a) This Chapter is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the City. Nothing in this Chapter creates a mandate that the Mayor and City Council must issue any or all of the commercial cannabis business permits if it is determined that the applicants do not meet the standards which are established in the application requirements or further amendments to the application process or that the Mayor and City Council, upon further deliberation, determines that the issuance of any or all commercial cannabis business permits will impact the public safety, welfare or other policy concerns which may be detrimental in the issuance of these permits. (b) Each year following the Mayor and City Council’s initial award of permits, if any, or at any time in the Mayor and City Council’s discretion, the Mayor and City Council may reassess the number of commercial cannabis business permits which are authorized for issuance to each business type. The Mayor and City Council, in its discretion, may determine by Resolution that the number of each type of commercial cannabis permits should be reduced, stay the same, or be expanded. 22.c Packet Pg. 806 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.090 Initial Application Procedure (a) The Mayor and City Council shall adopt by Resolution the procedures to govern the application process, and the manner in which the decision will ultimately be made regarding the issuance of any commercial cannabis business permit(s), which Resolution shall include or require the City Manager to provide detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to each set of review criteria (“Review Criteria”), which shall require any applicable environmental review pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code as contemplated by Business and Professions Code Section 26055, subdivision (h). The Resolution shall authorize the City Manager or his/her designee(s) to prepare the necessary forms, adopt any necessary rules to the application, regulations and processes, solicit applications, conduct initial evaluations of the applicants, and to ultimately provide a final recommendation to the Mayor and City Council. (b) At the time of filing, each applicant shall pay an application fee established by Resolution of the Mayor and City Council, to cover all costs incurred by the City in the application process. (c) After the initial review, ranking, and scoring under the Review Criteria, the City Manager or his/her designee(s) will make a recommendation to the Mayor and City Council, and the Mayor and City Council shall make a final determination in accordance with Section 5.10.180. (d) THE CITY 'S RESERVATION OF RIGHTS: The City reserves the right to reject any or all initial applications. Prior to permit issuance, the City may also modify, postpone, or cancel any request for applications, or the entire program under this Chapter, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted by law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to any other justification provided, including a failure to comply with other requirements in this Chapter, an application RISKS BEING REJECTED for any of the following reasons: (1) The application was received after the designated time and date; (2) The application did not contain the required elements, exhibits, nor organized in the required format; or (3) The application was not considered fully responsive to the request for permit application. 22.c Packet Pg. 807 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business Permit or Being Employed by a Commercial Cannabis Business (a) No person may hold a commercial cannabis business permit, or be employed by a commercial cannabis business, in the City of San Bernardino, if any of the following conditions exist: (1) The applicant, permittee, or employee has been denied a commercial cannabis business permit, or similar license, or has had such a permit or license suspended or revoked by any city, county, city and county or any state cannabis licensing authority; (2) The applicant, permittee, employee, or the owner of the property upon which the proposed commercial cannabis activity is to occur, was either convicted of, pled guilty or nolo contendere to, or has been found by the City’s Hearing Officer pursuant to Chapters 9.92 or 9.93 to be responsible for, conducting commercial cannabis activity in non-compliance with Title 19, other City of San Bernardino ordinances, codes and requirements, or state law, and they failed to discontinue operating in a timely manner; or (3) The applicant, permittee, or employee, or the owner of the property upon which the proposed commercial cannabis activity is to occur, was found by the appropriate taxing agency to have been in non-compliance with federal, state or local tax laws or failed to report income from commercial cannabis activities to federal, state, or local government in violation of law. 5.10.110 Expiration of Commercial Cannabis Business Permits Each commercial cannabis business permit issued pursuant to this Chapter shall expire three (3) years after the date of its issuance. Commercial cannabis business permits may be renewed as provided in this Chapter. 5.10.120 Revocation of Permits Commercial cannabis business permits may be suspended or revoked by the City Manager or his/her designee for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to this Chapter. 5.10.130 Renewal Applications (a) An application for renewal of a commercial cannabis business permit shall be filed at least sixty (60) calendar days prior to the expiration date of the current permit. (b) The renewal application shall contain all the information required for new applications. 22.c Packet Pg. 808 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (c) The applicant shall pay a fee in an amount to be set by Resolution of the Mayor and City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Chapter. (d) An application for renewal of a commercial cannabis business permit shall be rejected if any of the following exists: (1) The application for renewal is filed less than sixty (60) days before the expiration of the commercial cannabis business permit. (2) The commercial cannabis business permit is suspended or revoked at the time of the application. (3) The commercial cannabis business has not been in regular and continuous operation in the four (4) months prior to the renewal application. (4) The commercial cannabis business has failed to conform to the requirements of this Chapter, or of any regulations adopted pursuant to this Chapter. (5) The permittee fails or is unable to renew its State of California license. (6) If the City has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of this Chapter, of the San Bernardino Municipal Code, or of the state rules and regulations, and the City or state has determined that the violation is grounds for termination or revocation of the commercial cannabis business permit. (e) The Community Development Director or his/her designee(s) is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the Community Development Director or his/her designee(s) is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare. Appeals from the decision of the Community Development Director or his/her designee(s) shall be handled pursuant to Sections 5.10.150, 5.10.160, and 5.10.170. (f) If a renewal application is rejected, a person may file a new application pursuant to this Chapter no sooner than one (1) year from the date of the rejection. 5.10.140 Effect of State License Suspension, Revocation, or Termination Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a commercial cannabis business to operate within the City, until the State of California, or its respective department or division, reinstates or reissues the State license. Should the State of California, or any of its departments or divisions, revoke or terminate the license of a commercial cannabis business, such revocation or termination shall also revoke or terminate the ability of a commercial cannabis business to operate within the City of San Bernardino. 22.c Packet Pg. 809 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.150 Appeals Unless specifically provided elsewhere to the contrary, any determination of the Chief of Police or Community Development Director, or the designees of either of them, may only be appealed to the City Manager, which decision shall be final. The City Manager may delegate the appeal to the City’s Administrative Law Officer (“Hearing Officer”) appointed in conformity with Chapter 9.92 of this Code, in which case, the decision of the Hearing Officer shall be final. All decisions of the Mayor and City Council, City Manager or Hearing Officer under this Chapter shall be final. All appeals shall be conducted as prescribed in this Section, Section 5.10.160 and Section 5.10.170. 5.10.160 Written Request for Appeal (a) Within ten (10) calendar days after the date of the determination, an aggrieved party may appeal such determination by filing a written appeal with the City Clerk setting forth the reasons why the determination was not proper. If no appeal of a determination is made within ten (10) days of the date of the determination, the determination shall be final. (b) At the time of filing the appellant shall pay the designated appeal fee, established by Resolution of the Mayor and City Council from time to time. 5.10.170 Appeal Hearing (a) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Manager, or if the appeal has been delegated to the Hearing Officer, before the Hearing Officer. The City Manager or Hearing Officer shall hear the matter de novo, and shall conduct the hearing pursuant to the procedures set forth by the City. (b) The appeal shall be held within a reasonable time after the filing the appeal, but in no event later than ninety (90) calendar days from the date of such filing. The City shall notify the appellant of the time and location at least ten (10) calendar days prior to the date of the hearing. (c) At the hearing, the appellant may present any information they deem relevant to the determination appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. (d) At the conclusion of the hearing the City Manager or Hearing Officer may affirm, reverse or modify the decision appealed. 5.10.180 Commercial Cannabis Business Permittee Selection Process 22.c Packet Pg. 810 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (a) The Mayor and City Council shall adopt by Resolution, a procedure guideline and Review Criteria by which the top applicants in each category of each commercial cannabis business will be presented to the Mayor and City Council for a final determination at a public hearing. (b) The top final applicants for each category may be invited to attend the Mayor and City Council meeting, only if requested by the City Manager or his/her designee where they may be expected to make a public presentation introducing their team and providing an overview of their proposal. In order to provide adequate time, presentations may be divided over more than one meeting over multiple days as determined to be necessary. (c) At least ten (10) calendar days prior to the hearing, notice of the hearing shall be sent to all property owners located within six hundred (600) feet of the proposed business locations of each of the finalists to be considered by the Mayor and City Council. (d) The Mayor and City Council shall either deny or approve the final candidates and shall select the top candidates in each category of the commercial cannabis businesses. The Mayor and City Council’s decision as to the selection of the prevailing candidates shall be final. (e) Official issuance of the commercial cannabis business permit(s), however, is conditioned upon the prevailing applicant(s) obtaining all required land use approvals. Following the Mayor and City Council’s selection, the prevailing applicant(s) shall apply to the City’s Community Development Department to obtain any required land use approvals or entitlements for the permittee’s location, if any. Land use approvals shall include compliance with all applicable provisions of CEQA. The City Manager or his/her designee(s) shall formally issue the commercial cannabis business permit(s) once the Community Development Director or his/her designee(s) affirms that all of the required land use approvals have been obtained. (f) Issuance of a commercial cannabis business permit does not create a land use entitlement or serve as a building permit. The commercial cannabis business permit shall only be for a term of three (3) years, and shall expire at the end of the three (3) year period unless it is renewed as provided herein. Furthermore, no permittee may begin operations, notwithstanding the issuance of a permit, unless all of the state and local laws and regulations, including but not limited to the requirements of this Chapter, applicable building permits, and conditions of the commercial cannabis business permit, have been complied with. Until a state license is available and obtained by the permittee, this means compliance with all provisions of the Medical Cannabis Collective Laws as set forth at Section 5.10.060. (g) Notwithstanding anything in this Chapter to the contrary, the Mayor and City Council reserves the right to reject any or all applications if it determines it would be in the best interest of the City, taking into account any health, safety and welfare impacts on the community. Applicants shall have no right to a commercial cannabis business permit until a permit is actually issued, and then only for the duration of the permit term. Each applicant assumes the risk that, at any time prior to the issuance of a permit, the Mayor and City Council may terminate or delay the program created under this Chapter or otherwise revise, amend, or repeal this Chapter. 22.c Packet Pg. 811 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (h) If an application is denied, a new application may not be filed for one (1) year from the date of the denial. (i) Each person granted a commercial cannabis business permit shall be required to pay the permit fee established by resolution of the Mayor and City Council, to cover the costs of administering the commercial cannabis business permit program created in this Chapter. 5.10.190 Updated Information Within fifteen (15) calendar days of any other change in the information provided in the application form or any change in status of compliance with the provisions of this Chapter, including any change in the commercial cannabis business location or ownership or management members, the applicant shall file an updated application form with the City Manager or his/her designee(s) for review along with an application amendment fee, as set forth in section 5.10.090 and 5.10.130. 5.10.200 Change in Ownership or Location (a) The person granted a commercial cannabis business permit shall not transfer ownership or control of the permit to another person unless and until the transferee obtains an amendment to the permit from the City Manager or his/her designee stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the City Manager or his/her designee in accordance with all provisions of this Chapter (as though the transferee were applying for an original commercial cannabis business permit) accompanied by a transfer fee in an amount set by Resolution of the Mayor and City Council (or if not set, shall be the same amount as the application fee), and the City Manager or his/her designee determines, after hearing, in accordance with this Chapter that the transferee passed the background check required for permittees and meets all other requirements of this Chapter. No transfer of ownership may occur within five (5) years of the date the commercial cannabis business permit is originally issued, except as provided below. (b) Commercial cannabis business permits issued through the grant of a transfer by the City Manager or his/her designee shall be valid for a period of one year beginning on the day the City Manager or his/her designee approves the transfer of the permit. Before the transferee’s permit expires, the transferee shall apply for a renewal permit in the manner required by this Chapter. (c) Changes in ownership of a permittee’s business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than 51% of the original ownership), must be approved by the City Manager or his/her designee through the transfer process contained in subsection (a). Failure to comply with this provision is grounds for permit revocation. (d) A permittee may change the form of business entity without applying to the City Manager or his/her designee for a transfer of permit, provided that either: 22.c Packet Pg. 812 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (1) The membership of the new business entity is substantially similar to the original permit holder business entity (at least 51% of the membership is identical), or (2) If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA and to comply with Section 5.10.060, subdivision (b), provided that the Board of Directors (or in the case of an unincorporated association, the individual(s) listed on the City permit application) of the original permittee entity are the same as the new business entity. Although a transfer is not required in these two circumstances, the permit holder is required to notify the City Manager in writing of the change within ten (10) calendar days of the change. Failure to comply with this provision is grounds for permit revocation. (e) No commercial cannabis business permit may be transferred when the City Manager or his/her designee has notified the permittee that the permit has been or may be suspended or revoked. (f) Any attempt to transfer a commercial cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such a purported transfer shall be deemed a ground for revocation of the permit. (g) The location specified in the commercial cannabis business permit may not change without an amendment to the permit, processed in the same manner as an initial permit pursuant to the process and fees set forth in Section 5.10.090. 5.10.210 City Business Registration Certificate Prior to commencing operations, and at all times thereafter, a commercial cannabis business shall maintain a valid City of San Bernardino business registration certificate. 5.10.220 Building Permits and Inspection Prior to commencing operations, and at all times thereafter, a commercial cannabis business shall be subject to a mandatory building inspection, and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), Fire Department approvals, Health Department approvals and other zoning and land use permit(s) and approvals. No modifications to the structure of the premises shall be made without required approvals listed above. 5.10.230 Certification from the Community Development Director 22.c Packet Pg. 813 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Prior to commencing operations, a commercial cannabis business must obtain a certification from the Community Development Director or his/her designee(s) certifying that the business is located on a site that meets all of the requirements of Title 19 of this Code. 5.10.240 Right to Occupy and to Use Property As a condition precedent to the City’s issuance of a commercial cannabis business permit pursuant to this Chapter, any person intending to open and to operate a commercial cannabis business shall provide sufficient evidence, which sufficiency shall be determined in the reasonable discretion of the Mayor and City Council, of the legal right to occupy and to use the proposed location for the proposed commercial cannabis activity. In the event the proposed location will be leased from another person, the applicant shall be required to provide a signed and notarized statement from all owners of the property, acknowledging that the property owners have read this Chapter and consent to the operation of the commercial cannabis business on the owner’s property. 5.10.250 Location and Design of Cannabis Businesses Commercial cannabis businesses are permitted to engage in commercial cannabis activities subject to the following zoning and locational requirements: (a) The commercial cannabis business must be located on property zoned CG (Commercial General), CG -2 (Commercial General-2), CG-3 (Commercial General -3), CR- 2 (Commercial Regional-Downtown), CR-3 (Commercial-Tri-City-Club), CCS-1 (Central City South), CCS-2 (Central City), CH (Commercial Heavy), IL (Industrial Light), IH (Industrial Heavy), OIP (Office Industrial Park), or as such successor zones as may be created by the Mayor and City Council from time to time, and must meet all of the requirements for development in these zones; and (b) The property on which the cannabis business is located must also meet all of the distance requirements listed below in subsections (b)(1)-(3), unless the Mayor and City Council adopt an ordinance allowing for a lesser distance. All distances shall be the horizontal distance measured in a straight line from exterior parcel line to exterior parcel line without regard to intervening structures, except as listed in subsection (b)(4). (1) The parcel shall be no closer than six hundred (600) feet of any residentially zoned or residentially used parcel in the City, the City’s sphere of influence, a neighboring incorporated city, or unincorporated county. (2) The parcel shall be no closer than six hundred (600) feet from any parcel in the City, the City’s sphere of influence, a neighboring incorporated city, or unincorporated county containing any of the following: A. A school providing instruction in kindergarten or any grades 1 through 12, (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12) that is in existence at the time the permit is issued; 22.c Packet Pg. 814 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B. A commercial daycare center licensed by the City, another city, or County that is in existence at the time the permit is issued; C. A youth center that is in existence at the time the permit is issued; or D. A park that is in existence at the time the permit is issued. (3) The City shall consider the proximity of the proposed commercial cannabis business to religious facilities and libraries in existence at the time the permit is granted when determining whether the issue the permit and any conditions thereto. (4) For the purposes of this subsection (b), the distance measurement shall be without regard to intervening structures, with the exception of the following, in which case the distance measurement shall be the shortest path of travel around the listed intervening structures: A. Freeways; B. Flood control channels; C. Railroads; D. The Santa Ana River. (c) Each proposed cannabis business project shall: (1) Conform with the City’s general plan, any applicable specific plans, master plans, and design requirements; (2) Comply with all applicable zoning and related development standards; (3) Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties; (4) Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development; (5) Be served by highways adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate; and (6) Be provided with adequate electricity, sewage, disposal, water, fire protection and storm drain facilities for the intended purpose. 5.10.260 Limitations on City’s Liability 22.c Packet Pg. 815 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 To the fullest extent permitted by law, the City of San Bernardino shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to this Chapter or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any commercial cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive the commercial cannabis business permit: (a) They must execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the City of San Bernardino, and its elected officials, officers, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City’s issuance of the commercial cannabis business permit, the City’s decision to approve the operation of the commercial cannabis business or activity, to the process used by the City in making its decision, or the alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents. (b) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Manager or his/her designee. (c) Reimburse the City of San Bernardino for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City of San Bernardino may be required to pay as a result of any legal challenge related to the City’s approval of the applicant’s commercial cannabis business permit, or related to the City’s approval of a commercial cannabis activity. The City of San Bernardino may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder. 5.10.270 Records and Recordkeeping (a) Each person granted a commercial cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a commercial cannabis business permit issued pursuant to this Chapter), or at any time upon reasonable request of the City Manager or his/her designee, each commercial cannabis business shall file a sworn statement detailing the number of sales by the commercial cannabis business during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes paid or due to be paid, including, but not limited to, employee withholdings. On an annual basis, each permittee shall submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. At the request of the City Manager, or his/her designee, the each permittee shall provide copies of the last three (3) years of their local, state and federal tax returns so that the City may verify the information provided above. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager or his/her designee(s). 22.c Packet Pg. 816 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (b) Each person granted a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, and agents currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the City Manager or his/her designee(s) upon a reasonable request. (c) Prior to state licensing, each commercial cannabis business shall maintain a record of all persons, patients, collectives and primary caregivers served by the commercial cannabis business, for a period of no less than four (4) years. Once a state license is obtained, the commercial cannabis business must maintain such records only to the extent permitted or required by the MAUCRSA. (d) All commercial cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing and distribution processes until purchase as set forth MAUCRSA. Additionally, all commercial cannabis businesses shall maintain records that identify the source of all products (company name, location, license numbers etc.). (e) Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPAA) regulations, each commercial cannabis business shall allow the City of San Bernardino officials to have access to the business’s books, records, accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four (24) hours after receipt of the City’s request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware. 5.10.280 Security Measures (a) A commercial cannabis business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the City Manager or his/her designee(s), these security measures shall include, but shall not be limited to, all of the following: (1) Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business. (2) Establishing limited access areas accessible only to authorized commercial cannabis business personnel. (3) Except for live growing plants which are being cultivated at a cultivation facility, all cannabis and cannabis products shall be stored in a secured and 22.c Packet Pg. 817 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 locked room, safe, or vault. All cannabis and cannabis products, including live plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss, (4) Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. Cameras shall clearly show each point of sale location, register with a time/date stamp. The commercial cannabis business shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the City Manager or his/her designee(s), and that it is compatible with the City’s software and hardware. In addition, remote and real-time, live access to the video footage from the cameras shall be provided to the City Manager or his/her designee(s). Video recordings shall be maintained for a minimum of one hundred twenty (120) days, and shall be made available to the City Manager or his/her designee(s) upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business. (5) Sensors shall be installed to detect entry and exit from all secure areas. (6) Panic buttons shall be installed in all commercial cannabis businesses. (7) Having a professionally installed, maintained, and monitored alarm system. The owner and operator shall be subject to the City’s security alarm systems requirements of Chapter 8.81 of this Code. (8) Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building as approved by the Community Development Department and Fire Department. (9) Security personnel shall be on-site 24 hours a day or alternative security as authorized by the City Manager or his/her designee(s). Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the City Manager or his/her designee(s), with such approval not to be unreasonably withheld. (10) Each commercial cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage. (b) Each commercial cannabis business shall identify a designated security representative/liaison to the City of San Bernardino, who shall be reasonably available to meet 22.c Packet Pg. 818 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 with the City Manager or his/her designee(s) regarding any security related measures or and operational issues. The commercial cannabis business shall notify the City Manager or his/her designee within twenty four (24) hours of a change in designated security representative/liaison. (c) As part of the application and permitting process each commercial cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, and any currency. (d) The commercial cannabis business shall cooperate with the City whenever the City Manager or his/her designee(s) makes a request, upon reasonable notice to the commercial cannabis business, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter. (e) A commercial cannabis business shall notify the City Manager or his/her designee(s) within twenty-four (24) hours after discovering any of the following: (1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager or his/her designee(s). (2) Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business. (3) The loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the commercial cannabis business. (4) Any other breach of security. 5.10.290 Restriction on Alcohol & Tobacco Sales (a) No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages to any person, including minors, on or about the property occupied by the commercial cannabis business. (b) No person shall cause or permit the sale of tobacco products to any person, including minors, on or about the property occupied by the commercial cannabis business. 5.10.300 Fees and Charges (a) No person may commence or continue any commercial cannabis activity in the City, without timely paying in full all fees and charges required for the operation of a commercial cannabis activity. Fees and charges associated with the operation of a commercial cannabis activity shall be established by Resolution of the Mayor and City Council which may be amended from time to time. Such fees and charges may include, but are not limited to, a 22.c Packet Pg. 819 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 regulatory fee imposed for the reasonable regulatory costs to the City for issuing licenses and permits, performing investigations, inspections, and audits, and the administrative and criminal enforcement and adjudication thereof. (b) All commercial cannabis businesses authorized to operate under this Chapter shall pay all sales, use, business, employment and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each commercial cannabis business shall cooperate with City with respect to any reasonable request to audit the commercial cannabis business’ books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes required to be paid during any period. 5.10.310 Miscellaneous Operating Requirements (a) Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the City. (b) On-site consumption of cannabis is prohibited at all times by all individuals on the property. (c) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time. (d) Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), time and date of each sale and other information which may be deemed necessary by the City. The commercial cannabis business shall ensure that such information is compatible with the City’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager or his/her designee(s) prior to being used by the permittee. (e) All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State and local regulations. No cannabis or cannabis products may be sold, distributed, or transferred out of the State. (f) There shall not be a physician located in or around any commercial cannabis business at any time for the purpose of evaluating patients for the issuance of a cannabis recommendation or card where applicable. (g) Prior to dispensing medicinal cannabis or medicinal cannabis products where applicable to any person, the commercial medicinal cannabis business shall obtain verification 22.c Packet Pg. 820 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient. (h) Emergency Contact. Each commercial cannabis business shall provide the City Manager or his/her designee(s) with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. The commercial cannabis business shall notify the City Manager or his/her designee within twenty four (24) hours of a change in the emergency contact. (i) Signage and Notices. (1) In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the requirements of Chapter 19.22 of this Code, including, but not limited to, seeking the issuance of a City sign permit. (2) No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window. (3) Each entrance to a commercial cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited. (4) Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right- of-way. (5) [Repealed] (6) In accordance with state law and regulations or as stipulated in the City of San Bernardino commercial cannabis business permit, holders of a commercial cannabis business permit shall agree that, as an express and ongoing condition of permit issuance and subsequent renewal, the holder of the permit shall be prohibited from advertising any commercial cannabis business located in the City of San Bernardino utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising, anywhere in the state. This paragraph is not intended to place limitations on the ability of a commercial cannabis business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways. (j) Minors. 22.c Packet Pg. 821 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (1) Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least twenty-one (21) years of age. Except as provided for under section 5.10.330 (c ). (2) The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the commercial cannabis business. Except as provided for under section 5.10.330 (c ). (k) Odor Control. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the Community Development Director or his/her designee(s) determine is a more effective method or technology: (1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; (2) An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business. (l) Display of Permit and City Business License. The original copy of the commercial cannabis business permit issued by the City pursuant to this Chapter and the City issued business license shall be posted inside the commercial cannabis business in a location readily- visible to the public. (m) Background Check. Every person listed as an owner, manager, or supervisor of the commercial cannabis business must submit fingerprints and other information deemed necessary by the Chief of Police or his/her designee(s) for a background check by the City of San Bernardino’s Police Department pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes City authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation. Pursuant to California Penal Sections 11105(b)(11) and 22.c Packet Pg. 822 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 13300(b)(11), which requires that there be a requirement or exclusion from employment, licensing or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a commercial cannabis business unless they have first cleared the background check, as determined by the Chief of Police or his/her designee(s). A fee for the cost of the background investigation, which shall be the actual cost to the City of San Bernardino to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis business permit is submitted. (n) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. (o) Permits and other Approvals. Prior to the establishment of any commercial cannabis business or the operation of any such business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to such commercial cannabis business. (p) If the commercial cannabis business permittee is operating as a collective or cooperative under Health and Safety Code Section 11362.775, subdivision (a), the commercial cannabis business shall terminate the membership of any member violating any of the provisions of this Chapter. (q) The interior and exterior of the premises of the commercial cannabis business shall be well lit at all times. The windows of the building shall provide an unobstructed view into the interior. 5.10.320 Other Operational Requirements The City Manager or his/her designee may develop other commercial cannabis business operational requirements or regulations as are determined to be necessary to protect the public health, safety and welfare. 5.10.330 Operating Requirements for Retailer Facilities; Delivery (a) No more than the number of retailers adopted by resolution may operate within the City of San Bernardino at any one time and no more than that number adopted by resolution shall be issued a permit by the City of San Bernardino to operate a retailer at one time. Both retailers offering storefront purchase (customers purchase and obtain cannabis onsite) and retailers offering delivery only shall be permitted. Each shall be required to maintain a physical location from which commercial cannabis activities are conducted that are permitted under this Chapter. (b) Retailers may only deliver to customers within a county or city that does not expressly prohibit delivery by ordinance. Retailers may only deliver to customers within the City of San Bernardino after obtaining a commercial cannabis business permit issued under the Chapter. 22.c Packet Pg. 823 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Security plans developed pursuant to this chapter shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit. (c) M-licensee retailers must verify the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and that the potential customer has a valid doctor's recommendation. A-licensee retailers must verify the age of customers to ensure persons under the age of twenty-one (21) are not permitted. (d) Entrances into the retailer shall be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to the retailer to separate it from the reception/lobby area. (e) Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. (f) Retailers may have only that quantity of cannabis and cannabis products reasonably anticipated to meet the daily demand readily available for sale on-site in the publically accessible retail sales area of the retailer. (g) All restroom facilities shall remain locked and under the control of management. 5.10.340 Operating Requirements for Commercial Cultivation Facilities (a) All outdoor (i.e. open air) cultivation is prohibited. The cultivation of all cannabis must occur indoors or within mixed light structures. (b) In no case, shall cannabis plants be discernable from a public or private road, sidewalk, park or any common public viewing area. (c) A permittee permitted to engage in commercial cannabis cultivation in the City of San Bernardino shall only be allowed to cultivate the square feet of canopy space permitted by state law. (d) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. (e) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife. (f) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis. 22.c Packet Pg. 824 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (g) All applicants for a cannabis cultivation permit shall submit the following in addition to the information generally otherwise required for a commercial cannabis business: (1) A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities (indoor, mixed-light) and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting (indoor, mixed-light). (2) A description of a legal water source, irrigation plan, and projected water use. (3) Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes. (4) Plan for addressing odor and other public nuisances that may derive from the cultivation site. 5.10.350 Operating Requirements for Testing Labs (a) Testing Labs shall be required to conduct all testing in a manner pursuant to Business and Professions Code Section 26100, et seq., and shall be subject to state and local law. Each Testing Lab shall be subject to additional regulations as determined from time to time as more regulations are developed under this Chapter and any subsequent State of California legislation regarding the same. (b) Testing Labs shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods. (c) Testing Labs shall obtain and maintain ISO/IEC 17025 accreditation as required by the bureau. (d) Testing Labs shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards required by the bureau unless remedial measures can bring the cannabis or cannabis products into compliance with quality standards as specified by law and implemented by the bureau. (e) Each operator of a Testing Lab shall ensure that any Testing Lab employee takes the sample of cannabis or cannabis products from the distributor’s premises for testing as required by state law and that the Testing Lab employee transports the sample to the Testing Lab. (f) Except as provided by state law, a Testing Lab shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with state law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from 22.c Packet Pg. 825 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol. (g) A Testing Lab may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A Testing Lab shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a Testing Lab for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received. 5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or Distribution of Edible and Other Cannabis Products (a) In addition to any locational restrictions contained within this Chapter, manufacturers requiring a Type-6, or Type-7 or any subsequent created manufacturing state license (using non-volatile and volatile solvents) as defined in MAUCRSA, may only be permitted to operate within those zone districts as similar manufacturing activities under Title 19 of this Code. (b) Any compressed gases used in the manufacturing process shall not be stored on any property within the City of San Bernardino in containers that exceeds the amount which is approved by Fire Department and authorized by the commercial cannabis business permit. Each site or parcel subject to a commercial cannabis business permit shall be limited to a total number of tanks as authorized by the Fire Department on the property at any time. (c) Manufacturers may use the hydrocarbons N-butane, isobutane, propane, or heptane or other solvents or gases exhibiting low to minimal potential human-related toxicity approved by both the Community Development Department and Fire Department. These solvents must be of at least ninety-nine percent purity and any extraction process must use them in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present. (d) If an extraction process uses a professional grade closed loop CO₂ gas extraction system every vessel must be certified by the manufacturer for its safe use as referenced in 5.10.360 (f). The CO₂ must be of at least ninety-nine percent purity. (e) Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number. (f) Certification from an engineer licensed by the State of California must be provided to the Community Development Department for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to: 22.c Packet Pg. 826 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (1) The American Society of Mechanical Engineers (ASME); (2) American National Standards Institute (ANSI); (3) Underwriters Laboratories (UL); or (4) The American Society for Testing and Materials (ASTM). (g) The certification document must contain the signature and stamp of the professional engineer and serial number of the extraction unit being certified. (h) Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Fire Department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes. (i) Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts. (j) Manufacturers may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere. (k) Manufacturers creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace. (l) Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store solvents and gases safely. (m) Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested. 5.10.370 Promulgation of Regulations, Standards and Other Legal Duties (a) In addition to any regulations adopted by the Mayor and City Council, the City Manager or his/her designee is authorized to establish, subject to approval by the Mayor and City Council, any additional rules, regulations and standards governing the issuance, denial or renewal of commercial cannabis business permits, the ongoing operation of commercial cannabis businesses and the City's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter. (b) Regulations shall be published on the City’s website. 22.c Packet Pg. 827 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (c) Regulations promulgated by the City Manager or his/her designee shall become effective upon date of publication. Commercial cannabis businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager or his/her designee. (d) Testing Labs and Distribution facilities shall be subject to state law and shall be subject to additional regulations as determined from time to time as more regulations are developed under Section 5.10.350 (a) of this Chapter and any subsequent State of California legislation regarding the same. 5.10.380 Community Relations (a) Each commercial cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide the above information to all businesses and residences located within one hundred (100) feet of the commercial cannabis business. The commercial cannabis business shall notify the City Manager or his/her designee within twenty four (24) hours of a change in community relations contact. (b) During the first year of operation pursuant to this Chapter, the owner, manager, and community relations representative from each commercial cannabis business holding a permit issued pursuant to this Chapter shall attend meetings with the City Manager or his/her designee(s), and other interested parties as deemed appropriate by the City Manager or his/her designee(s), to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter. After the first year of operation, the owner, manager, and community relations representative from each such commercial cannabis business shall meet with the City Manager or his/her designee(s) when and as requested by the City Manager or his/her designee(s). (c) Commercial cannabis businesses to which a permit is issued pursuant to this Chapter shall develop a City approved public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. 5.10.390 Fees Deemed Debt to the City of San Bernardino The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City of San Bernardino that is recoverable via an authorized administrative process as set forth by ordinance, or in any court of competent jurisdiction. 5.10.400 Permittee Responsible for Violations 22.c Packet Pg. 828 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The person to whom a permit is issued pursuant to this Chapter shall be responsible for all violations of the laws of the State of California or of the regulations and/or the ordinances of the City of San Bernardino, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the commercial cannabis business whether or not said violations occur within the permittee’s presence. 5.10.410 Inspection and Enforcement (a) The City Manager, Chief of Police or designee of either of them charged with enforcing the provisions of this Chapter, or any provision thereof, may enter the location of a commercial cannabis business at any time, without notice, and inspect the location of any commercial cannabis business as well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of State law. (b) It is unlawful for any person having responsibility over the operation of a commercial cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law. (c) The City Manager, Chief of Police or designee of either of them charged with enforcing the provisions of this Chapter may enter the location of a commercial cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of San Bernardino shall be logged, recorded, and maintained in accordance with established procedures by the San Bernardino Police Department or regulations adopted pursuant to the authority of this Chapter. 5.10.420 Compliance with State Regulation It is the stated intent of this Chapter to regulate commercial cannabis activity in the City of San Bernardino in compliance with all provisions MAUCRSA and any subsequent state legislation. 5.10.430 Violations declared a public nuisance Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a public nuisance and may be summarily abated by the City Manager, Chief of Police, or designee of either of them. The City may recover any nuisance abatement costs and/or administrative fines relating to such violations in accordance with Government Code Sections 38773.1 and 38773.5 in accordance with Chapter 8.30 of this Code. 5.10.440 Each violation a separate offense 22.c Packet Pg. 829 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Each and every violation of this Chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City of San Bernardino. Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relief, any permit issued pursuant to this Chapter being deemed null and void, disgorgement and payment to the City for any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. The City of San Bernardino may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the commercial cannabis business or persons related to, or associated with, the commercial cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the City Manager, Chief of Police or designee of either of them, may take immediate action to temporarily suspend a commercial cannabis business permit issued by the City, pending a hearing before the City Manager, or his/her designee(s). 5.10.450 Criminal Penalties Any person causing, permitting, aiding, abetting, suffering or concealing a violation of this Chapter shall be guilty of a misdemeanor, and may, in the discretion of the City Attorney, be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment in the city or county jail for a period of not more than six (6) months, or by both such fine and imprisonment. The City Attorney, in his or her sound discretion, may prosecute a violation of this Chapter as an infraction, rather than a misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to an infraction. Any person convicted of an infraction under this provisions of this Chapter shall be punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine not exceeding two hundred dollars ($200) for a second violation within one year, and a fine not exceeding five hundred dollars ($500) for a third violation within one year. A fourth violation of this Chapter within one year shall be charged as a misdemeanor and may not be reduced to an infraction. Each day a violation is committed or permitted to continue shall constitute a separate offense. 5.10.460 Remedies cumulative and not exclusive The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law. SECTION 4. REPEAL All previous ordinances related to the establishment and operation of commercial cannabis activities within the City of San Bernardino, and to the extent that such ordinances may be in force before or at the time this Ordinance takes effect, including, without limitation, and to the extent that such ordinances may be in force before or at the time this Ordinance takes effect, the San Bernardino Regulate Marijuana Act of 2016, commonly known as Measure O, which appeared on the ballot in the City of San Bernardino at a Special Municipal Election held on November 8, 2016, and the San Bernardino Medical Cannabis Restrictions and Limitations Act, commonly known as Measure N, which appeared on the ballot in the City of San 22.c Packet Pg. 830 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Bernardino at a Special Municipal Election held on November 8, 2016the moratorium established by Ordinance No. MC-1452, are hereby repealed and shall be of no further effect from the effective date of this Ordinance. SECTION 5. ADDITIONAL FINDINGS 5.1 GENERAL PLAN The Ordinance is consistent with the General Plan. The people Mayor and City Council of the City of San Bernardino find that the Ordinance is consistent with the General Plan. The Ordinance proposes a comprehensive regulatory system for commercial cannabis activities. The regulations include numerical, locational, design, operating, security and sensitive-use distance regulations on commercial cannabis activities. The Ordinance includes review and recommendations of applications for commercial cannabis activities, which will be overseen by the City Manager, and will include the Police Department and Planning Division of the Community Development Department. The Ordinance is also consistent with the following General Plan goals and policies: Policy 2.2.8 requires the City to control the location and number of community-sensitive uses, such as alcohol sales, adult bookstores and businesses, game arcades, and similar uses based on proximity to residences, schools, religious facilities, and parks. The Ordinance establishes a maximum number of permitted commercial cannabis activities within the City. The Ordinance also establishes locational restrictions, including zoning and distance restrictions. The Ordinance establishes a distance buffer between commercial cannabis activities and residential zones and uses. The Ordinance establishes a distance buffer between commercial cannabis activities and schools, daycare centers, youth centers, and parks. The discretionary approval process within the Ordinance allows the City to consider the proximity of a proposed location to other community-sensitive uses such as religious facilities and libraries when determining whether to approve an application for a permit under the Ordinance. Policy 2.2.9 requires the Police Department review uses that may be characterized by high levels of noise, nighttime patronage, and/or rates of crime; providing for the conditioning or control of use to prevent adverse impacts on adjacent residences, schools, religious facilities, and similar “sensitive” uses. The Police Department has been involved in the development of the Ordinance to ensure that the Ordinance contains adequate regulations that prevent adverse impacts on adjacent “sensitive” uses. The Ordinance contains regulations mandating minimum security measures, including security cameras, panic 22.c Packet Pg. 831 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 buttons, monitored alarm systems, and on site security guards. The application process adopted by the people Mayor and City Council of the City of San Bernardino pursuant to the Ordinance will allow for the Police Department to review applications and provide recommendations to the City Manager. The Police Department’s review will be incorporated into the City Manager’s final recommendation to the Mayor and City Council on whether to approve a permit application. The Mayor and City Council may reject any application if it determines rejection would be in the best interests of the City, taking into account any health, safety and welfare impacts on the community. Policy 2.2.10 requires the City to protect the quality of life during the review of projects. The City is required to use its discretion to deny or requirement mitigation of projects that result in impacts that outweigh the benefits to the public. The Mayor and City Council may reject any application that it determines rejection would be in the best interests of the City, taking into account any health, safety and welfare impacts on the community. Additionally, as a discretionary approval, the Ordinance authorizes the Mayor and City Council to condition its approval of a permit to mitigate the negative effects of a commercial cannabis activity. 5.2 PUBLIC HEALTH, SAFETY AND WELFARE The Ordinance is not detrimental to the public interest, health, safety, convenience, or welfare. There are a high number of unpermitted commercial cannabis businesses currently operating in the City of San Bernardino. The unpermitted commercial cannabis businesses have caused significant public health, safety and welfare concerns as discussed in the recitals above. The Ordinance addresses those public health, safety and welfare concerns by limiting the number and location of the commercial cannabis activities and imposing operating conditions that will ensure that qualified patients and persons over 21 years of age have safe access to cannabis while maintaining the quality of life for the City’s residents. The Ordinance is not detrimental to the public interest, health, safety, convenience, or welfare. 5.3 BALANCE OF LAND USES The Ordinance would maintain the appropriate balance of land uses within the City. The Ordinance limits the location of commercial cannabis activities to specified zones within the City and establishes distance buffers from sensitive-uses. The Ordinance includes numerical restrictions on the total number of permitted commercial cannabis activities to ensure that the land uses in the City remain balanced. The Ordinance includes discretionary approval which allows the Mayor and City Council to consider the balance of land uses when considering the approval of an application. 5.4 SUITABILITY 22.c Packet Pg. 832 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The subject parcel(s) are physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested land use designation(s) and the anticipated land use development(s). The Ordinance includes discretionary approval which allows the Mayor and City Council to consider the suitability of the property proposed in each application for the proposed commercial cannabis activity. The zoning restrictions included within the Ordinance were selected because those zones are the most likely to contain suitable properties for the establishment of commercial cannabis activities. SECTION 6. ENVIRONMENTAL DETERMINATION The people Mayor and City Council of the City of San Bernardino, California, hereby find and determine that this Ordinance is not subject to environmental review under the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); Section 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has no potential for resulting in a physical change of the environment, directly or indirectly; and Business and Professions Code Section 26055(h) because the Ordinance requires the discretionary review of permits to include any applicable environmental review pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code. SECTION 7. MAJORITY VOTE REQUIRED; EFFECTIVE DATE; AMENDMENTS If a majority of the voters voting on this Ordinance vote in its favor, then this Ordinance shall become a valid and binding ordinance of the City of San Bernardino. The Ordinance shall be considered as adopted upon the date that the vote is declared by the Mayor and City Council, and shall go into effect 10 days after that date. The Ordinance may only be repealed or amended by a vote of the people, except as stated in the Ordinance.This Ordinance shall be effective upon the thirty-first (31st) day following its final passage by a majority vote of the Mayor and City Council. SECTION 8. SEVERABILITY While it is the intent of people Mayor and City Council of the City of San Bernardino to adopt a comprehensive regulatory system for commercial cannabis activities within the City of San Bernardino, if any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are severable. The people Mayor and City Council of the City of San Bernardino declare that they would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. Further, the people of the City of San Bernardino declare that if this Ordinance is held invalid in its entirety, that such invalidity shall not revive any other ordinance, including, without limitation, and to the extent that such ordinances may be in force before or at the time this Ordinance takes effect, the San Bernardino Regulate Marijuana Act of 2016, commonly 22.c Packet Pg. 833 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 known as Measure O, which appeared on the ballot in the City of San Bernardino at a Special Municipal Election held on November 8, 2016, and the San Bernardino Medical Cannabis Restrictions and Limitations Act, commonly known as Measure N, which appeared on the ballot in the City of San Bernardino at a Special Municipal Election held on November 8, 2016. SECTION 9. COMPETING MEASURES In the event that this measure and another measure or measures relating to the regulation of commercial cannabis activities in the City of San Bernardino appear on the same ballot, the provisions of the other measure or measures shall be deemed to be in conflict with this measure. Should there be a measure or measures in conflict with this measure, the measure receiving the greater number of affirmative votes required to pass shall prevail in its entirety over the conflicting measure or measures, and the conflicting measure or measures shall be null and void. /// /// /// 22.c Packet Pg. 834 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- 00060808.1 Page 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING CHAPTER 5.10 OF THE SAN BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF COMMERCIAL CANNABIS ACTIVITIES I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and City Council of the City of San Bernardino at a _______________________ meeting thereof, held on the _____ day of ______________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, CMC, City Clerk The foregoing Ordinance is hereby approved this _____ day of __________________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By:____________________ 22.c Packet Pg. 835 Attachment: CM.Cannabis.Reg.Ordinance (CityCouncil1stReading-SoftRedline) (00060816xB0EC9) (5729 : Final Reading of Ordinance No. MC- Date: To: From: Subject: Recommendation City of San Bernardino Request for Council Action August 15, 2018 Honorable Mayor and City Counci�embers Andrea M. Miller, City Manag�� By: Teri Ledoux, Assistant 'cify Manager Staff Report First Amendment to the Agreement with Westbound Communications, Inc. for Marketing and Public Relations Services Authorize the City Manager to execute a First Amendment to the Professional Services Agreement with Westbound Communications, Inc. to increase the total compensation by $169,000 for an amount not to exceed $410,000 in FY2018-19; authorize the City Manager or designee to increase the purchase order for a total amount not to exceed $410,000; and authorize the Director of Finance to amend the FY2018-19 budget as outlined in this report. Background In May 2015, the Mayor and City Council adopted the City's seven priority goals including Community Engagement & Public Relations. In March 2018, the Mayor and City Council adopted a Vison, Job Statement, Operating Paradigm, and 2018-2019 Goals and Objectives all of which are a part of a strategic planning process to establish systems and practices that promote good governance and effective service to the community. In line with those goals and priorities, the City is interested in shedding its image of violence and poverty, and replacing it with the understanding that San Bernardino is a City of opportunity. The City aims to position itself as a world-class community where residential, commercial, and industrial growth is not only possible, but encouraged. The City's vision is to be strong and prosperous. On April 4, 2018, the Mayor and City Council approved Resolution No. 2018-96 approving an agreement with Westbound Communications Inc. to provide marketing and public relations services. The objective of this public relations and marketing effort is to develop a clear, strong, and resilient brand identity that represents the varied attributes of the San Bernardino community and differentiates us from other cities. It is expected that the resulting brand messaging will provide a compelling message for target audiences that San Bernardino is interested in: 8/30/2018 6:26 PM 23.a Packet Pg. 836 Attachment: CM.Westbound Communications.First Amendment.SR (5726 : First Amendment to the Agreement with Westbound • Attracting, retaining, and growing businesses; • Building a vibrant downtown; and • Encouraging residents of all ages to engage in community life, civic activities and recreational interests. The current agreement with Westbound Communications includes: 1. Research & Foundation - This task encompasses the initial research necessary to define target audiences, identify what value the City offers to the target audiences, develop a brand positioning statement and test recommended brand concepts using targeted focus groups, surveys, and other methodologies as appropriate. The goal of this task is to answer the question, “Who are we as a City and how do we relate our ‘products’ and services in a way that’s meaningful to our customers and the values they hold dear?” 2. Branding and Message Development - In this phase of the firm will create the messaging, the expression of brand, and visual elements that will effectively communicate the City’s identity to target audiences. Visual elements will include recommended logo, colors, fonts, graphic style and elements that are adaptable for use across a variety of media applications, including the City website. 3. Strategic Brand Implementation & Community Engagement - This task will define the activities designed to effectively establish the City’s new brand identity to the target audiences as well as identify ongoing strategies for communicating, maintaining and enhancing the brand’s value over the first three years following introduction. 4. Development and Execution of a Communications Plan - This task requires the development of a Communications Plan for consistent, informative communication from the City to the public regarding actions of the City Council and staff, and regarding City programs, services, and initiatives. 5. Report and Presentation - The firm will prepare and submit their final branding report, including style guide and related graphics, to the City. Graphics designed to be used for placement in letterhead, folders, handouts and other marketing materials. In addition, the firm will be required to make a formal presentation to the City Manager and the City Council at the completion of the project to present their final report. Discussion During FY2018-19 budget discussions, the Manager of Communications position was eliminated creating a savings of $150,000 to the General Fund and the Professional Services line item in the Communications Division budget was increased by $60,000 to secure additional consultant services. Westbound Communications has submitted a revised scope of services to assume social media, newsletter, brochures, graphics, advertising and other general communication responsibilities that were previously handled by the Manager of Communications and expand these services to provide greater focus and increased ourtreach. The revised proposal for services is attached as Exhibit 2 to the First Amendment. 8/31/2018 9:56 AM 23.a Packet Pg. 837 Attachment: CM.Westbound Communications.First Amendment.SR (5726 : First Amendment to the Agreement with Westbound Westbound Communications Inc. has provided major milestones and accomplishments in over the past 5 months including: • Research and focus groups for the branding effort • Citywide proactive communications – telling the City’s story • Providing PR services on cannabis, animal control, and other public information • Increased social media outreach • Re-design and dissemination of the newsletter • Broadened broadcast offerings • Design of certain documents and postings • Western Regional grand welcome for visitors and information to area residents • Working with IEMG to re-design videos to represent San Bernardino in a better light • Gathering accomplishments for FY 2018/19 to include in a brouchure Westbound Communications will be providing a presentation on their accomplishments to date and plans for future at this evening’s council meeting. Fiscal Impact The total cost of the original fifteen month agreement is $241,000: FY 2017/18 - $75,000 and FY 2018/19 $166,000. There is no impact to the General Fund by increasing the amount of compensation by $169,000 for a total of $410,000 as funding is available in the Communications Budget. The savings is derived from the eliminated position and through savings from previously budgeted items that are now available through the agreement with Westbound Communication. However, a budget amendment to redirect the funds to the appropriate line items is needed as follows: Communications Budget Maintenance and Operations 001-100-0013 Current Budget FY 18/19 Proposed Budget FY 18/19 5111 - Materials and supplies $6,420 $10,000 5121 - Advertising $21,800 $1,986 5122 - Dues and subscriptions $9,701 $3,000 5132 - Meetings and conf $5,225 -0- 5174 - Printing $170,040 $100,000 5502 - Professional/Contractual $258,000 $335,000 5505 – Other Professional $13,800 $35,000 Total M & O $484,986 $484,986 Conclusion It is recommended that the Mayor and City Council authorize the City Manager to execute a First Amendment to the Professional Services Agreement with Westbound Communications, Inc. to increase the total compensation by $169,000 for an amount not to exceed $410,000 in FY2018-19; authorize the City Manager or designee to increase the purchase order for a total amount not to exceed $410,000; and authorize the Director of Finance to amend the FY2018-19 budget as outlined in this report. 8/31/2018 9:56 AM 23.a Packet Pg. 838 Attachment: CM.Westbound Communications.First Amendment.SR (5726 : First Amendment to the Agreement with Westbound Attachments Attachment 1 First Amendment to Agreement with Westbound Communications; Exhibit 1 Resolution No. 2018-96 and Original Agreement; and Exhibit 2 Revised Scope of Services Ward: All Synopsis of Previous Council Actions: April 4, 2018 – Resolution No. 2018-96 authorizing an agreement with Westbound Communications for marketing and public relations services. 8/31/2018 9:56 AM 23.a Packet Pg. 839 Attachment: CM.Westbound Communications.First Amendment.SR (5726 : First Amendment to the Agreement with Westbound Exhibit 1 to Amendment 23.b Packet Pg. 840 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 841 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 842 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 843 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 844 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 845 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 846 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 847 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 848 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 849 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 850 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound 23.b Packet Pg. 851 Attachment: CM.Westbound Communications.Exhibit 1 to Amendment (5726 : First Amendment to the Agreement with Westbound Exhibit A FIRST AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF SAN BERNARDINO AND WESTBOUND COMMUNICATIONS FOR MARKETING AND PUBLIC RELATIONS SERVICES THIS FIRST AMENDMENT (“AMENDMENT”) TO AGREEMENT is made and entered into this 5th day of September, 2018 (“Effective Date”), by and between the CITY OF SAN BERNARDINO, CALIFORNIA, a Charter City (“CITY”), and Westbound Communications, INC. (“Consultant”). WITNESSETH: WHEREAS, On April 4, 2018 Resolution No. 2018-96 was adopted approving an agreement (“Agreement”) between CITY and CONSULTANT for marketing and public relations services; and WHEREAS, CITY and CONSULTANT seek by this Amendment to increase the scope of the services and increase the amount of compensation by an additional amount of $169,000 for a total amount not to exceed $410,000 from April 2018 through June 30th 2019. NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1. Section 2.1 Compensation is hereby amended to read: CITY agrees to pay, and PR FIRM agrees to accept, as full compensation for the PR FIRM’s services as follows: Ninety One Thousand Dollars ($91,000) in one time services to conduct research, community engagement, branding, message development, and a communications plan; compensation at the rate of Sixteen Thousand ($16,500) per month; and Ninety One Thousand ($91,000) for design, distribution of materials, advertising, photography and mileage reimbursement for a total contract amount not to exceed $410,000 from April 1, 2018 through June 30, 2019. 2. Original Agreement dated April 4, 2018, between the City of San Bernardino and Westbound Communications, INC. is attached as Attachment 1. 3. The revised scope of work describing the increase in services is attached as Attachment 2 and shall be included with this amendment and Original Agreement. Describe scope of work, invoicing and payment and general terms of conditions. 4. Except for changes specifically set forth herein, all other terms and conditions of the agreement shall remain in full force and effect. /// /// /// /// 1 23.c Packet Pg. 852 Attachment: CM.Westbound Communications.Amendment - Exhibit A (5726 : First Amendment to the Agreement with Westbound Exhibit A FIRST AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF SAN BERNARDINO AND WESTBOUND COMMUNICATIONS FOR MARKETING AND PUBLIC RELATIONS SERVICES IN WITNESS THEREOF, this Agreement is executed on the dates set forth below and effective on the date first set forth above. “CONSULTANT” “CLIENT” Westbound Communication, INC City of San Bernardino By: ______________________________ By: ______________________________ Carrie Gilbreth Andrea M. Miller, City Manager Approved as to Form: Gary D. Saenz, City Attorney By: ______________________________ ATTEST: By: ______________________________ Georgeann Hanna, CMC, City Clerk 2 23.c Packet Pg. 853 Attachment: CM.Westbound Communications.Amendment - Exhibit A (5726 : First Amendment to the Agreement with Westbound Exhibit 2 to Amendment Public Relations and Marketing Consultant Westbound Communications Revised Budget August 30, 2018 Westbound is proposing a multi-layered approach work for the City: 1) research, 2) branding and message development, 3) brand implementation (internal and external launch), 4) communications plan development and ongoing implementation, 5) report and presentation, and 6) hard costs (design, advertising, etc.). The following revised budget includes a one-time budget for the rebranding (Tasks 1, 2, 3, 5 - $91,000), a proposed monthly retainer (Task 4 – April – June 2018 $10,000 p/mo and July 2018 – June 2019 increased to $16,500 p/mo), as well as new hard costs ($91,000) so that Westbound can prioritize and manage all-things production and design. Tasks 1, 2, 3, 5 remain unchanged from previously approved budget. Professional fees remain unchanged and are tiered and are made of the following hourly rates: • Senior Strategist $175 • Project Manager - $150 • Account Specialist - $130 • Branding/Creative Director - $130 • Research Director - $130 • Account Support - $75 1 23.d Packet Pg. 854 Attachment: CM.Westbound Communications Exhibit 2 to Amendment - WB Revised Scope (5726 : First Amendment to the Agreement with Exhibit 2 to Amendment Total Cost/Budget Projections (April 2018 - June 2019) Budget Item Description Cost One-time Costs - $91,000 Stage/Task 1: Research • 10-15 Interviews with Stakeholders • 2-3 Business Roundtable and Residential Focus Groups • Branding Session $22,000 Stage/Task 2: Branding and Message Development • Three (3) Draft and one (1) Final Brand Identity • Draft and Final versions of a Brand Guide • Creative Toolkit $35,000 Stage/Task 3: Strategic Brand Implementation & Community Engagement • Internal and External Launch $25,000 Stage/Task 5: Report and Presentation • Ongoing Reporting • Formal Report
 • Formal Presentation to City Manager and City Council $9,000 Total Est. One- Time Costs $91,000 2 23.d Packet Pg. 855 Attachment: CM.Westbound Communications Exhibit 2 to Amendment - WB Revised Scope (5726 : First Amendment to the Agreement with Exhibit 2 to Amendment Total Cost/Budget Projections (April 2018 - June 2019) Revised FY 2017/18 and 2018/19 Budget (15 months) Monthly/Ongoing Retainer Stage/Task 4: Development and Ongoing Execution of Communications Plan 
 Communications Support Activities as Outlined in the RFP (pre-launch, proactive and foundational activities, plus post- launch support and implementation of Task 4 as outlined in the proposal) • Development of Citywide communications plan • Message development and presentation/media training for City spokespeople on multiple city initiatives and issues • Monthly newsletter development • Social media content creation, monitoring and response (daily) • Development of direct communication vehicles (letters, memos) with internal and external audiences • Development of departmental reports (ie FY 2017/18 successes) • Press material development, media pitching and media response • Television station support and strategy on video creation • Website updates • Event coordination and support (community meetings, ground breakings, etc.) • Development of marketing fliers and brochures • Lead communication of citywide initiatives to gain public support/consensus (ie 40th Street, CIP) 110 estimated hours per month April – June 2018 $10,000/mo July 2018 – June 2019 $16,500/mo. Total Annual Retainer: $228,000 Hard Costs – Printing, advertising, signage and production costs associated with campaign. Mileage reimbursement Est. $1,000 3 23.d Packet Pg. 856 Attachment: CM.Westbound Communications Exhibit 2 to Amendment - WB Revised Scope (5726 : First Amendment to the Agreement with Exhibit 2 to Amendment Graphic Design This will include, but not be limited to: • Monthly newsletter • Marketing brochures and fliers • City reports including FY updates, budget reports, board and commission workbooks • Neighborhood improvement updates • Electronic billboard design • Press materials (graphics, maps) • Event signage (community meeting boards, etc.) $48,000 (pending City needs) Distribution This will include, but not be limited to: • Door-to-door deliveries of communication vehicles and neighborhood improvement notices • Mailings when necessary $26,000 Advertising This will include, but not be limited to: • Social media advertising • Newspaper/digital advertising $10,000 (pending City needs) Photography This will include, but not be limited to: Headshot photography of employees Event photography Marketing $6,000 (pending City needs) Total Hard Costs: $91,000 Total Est. Campaign Cost (Task 4 and Hard Costs) $319,000 4 23.d Packet Pg. 857 Attachment: CM.Westbound Communications Exhibit 2 to Amendment - WB Revised Scope (5726 : First Amendment to the Agreement with Exhibit 2 to Amendment Total Cost/Budget Projections (April 2018-June 2019) Budget Item Description Cost Total Annual Contract Amount - $91,000 Task 1, 2, 3, 5 • Research • Branding and Message Development • Brand Implementation and Community Engagement • Report and Presentation $91,000 Task 4 • Development and Ongoing Execution of Communications Plan $228,000 Hard Costs • Design, printing, advertising, mileage, etc. $91,000 Total Est. Annual Contract Amount $410,000 5 23.d Packet Pg. 858 Attachment: CM.Westbound Communications Exhibit 2 to Amendment - WB Revised Scope (5726 : First Amendment to the Agreement with 24.a Packet Pg. 859 Attachment: PR.Route 66 2018-Staff report (5722 : Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back the event area. The approved route is 2nd St to Arrowhead Avenue, north to 5th Street, west on 5th Street to “E” Street, south on “E” Street, east on Court Street to D Street, east on 2nd Street to Arrowhead Avenue - approximately 1.3 miles. Discussion In 2017, the City contributed approximately $36,499 through in-kind services of staff labor from the following departments; the Police Department; Parks, Recreation & Community Services Department; and Public Works. Staff recommends the City’s contribution to this year’s event continue to be in the form of in-kind services described below through resolution 2017-183. This year the San Bernardino Chamber of Commerce is requesting a fee waiver in the amount of $39,834 for City services listed below: Police Department: the Police Departments estimated labor cost is $26,760 (this amount does not cover any additional law enforcement services that may be required before, during or after the event). The Police department will provide services from 8:30 a.m. to 8:30 p.m. for general public safety; fixed post and traffic deployment. Police Services will also include Command Post coverage; motorcycle officers; marked and unmarked units; and a mobile command post to ensure public safety. Parks, Recreation & Community Services: The estimated labor cost for the Parks & Recreation department is an estimated $8,074. These costs have been incorporated into the departments FY 2018-19 adopted budget. The Parks & Recreation department will provide setting up trash boxes throughout event; trash pickup during event – replacing trash liners; restocking of the bathrooms (portable units); provide ice for initial set-up of the event (about 6 large coolers); provide tables, chairs, and setup/take down of event tent; order the roll off for event trash; fence off Court Street Square (Beer Garden); provide generators to two stages and event vendors with previously identified electrical need; and, delivery of products to Beer Gardens. Public Works: The estimated cost for the Public Works Department is $5,000. The Public Works department will provide assistance with street closures; install temporary No Park Zones; stage traffic control; setup and maintain traffic control; removal of temporary No Parking Zones and Barricades; Facilities staff support will provide access to the Carousel Mall parking lot structure; access to southeast surface lot at Carousel Mall for event on-site registration; access to City Hall parking structure; access to Court Street Square and parking lot; janitorial services; street cleaning; right of way cleanup prior to event; and, access to Conference Room 201-A for usage as a volunteer break area from 8:00 a.m. to 10:00 p.m. 2018-19 Goals and Objectives The request for this partnership aligns with Goal No. 7: Pursue City Goals and Objectives by working with other agencies. This partnership will allow us to work with a government agency that works towards benefitting the City of San Bernardino’s downtown area, locals businesses, and local community. 8/31/2018 9:28 AM 24.a Packet Pg. 860 Attachment: PR.Route 66 2018-Staff report (5722 : Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back Fiscal Impact The Parks, Recreation & Community Services department has incorporated the anticipated cost for their services to be provided for the 2018 event in the FY 2018-19 adopted budgets. The additional costs for services from the Police Department and Public Works have not been incorporated into the FY 2018-19 adopted budget, but these costs were waived last year by City Council. The City’s financial impact will come from the estimated labor costs as indicated below: • Police Services – estimated labor costs of $26,760 • Parks, Recreation & Community Services – estimated labor cost of $8,074. • Public Works – estimated cost of $5,000 Total Estimated Fiscal Impact: $39,834 Conclusion Review, discuss and provide direction in response to the request for a fee waiver in the amount of $39,834 for the San Bernardino Chamber of Commerce Rendezvous Back to Route 66 2018 event, and if necessary, adopt Resolution No. 2018-252 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Service Agreement between the City of San Bernardino and San Bernardino Chamber of Commerce to provide support services for Rendezvous Back to Route 66 2018 event. Attachments Attachment 1 – Resolution Attachment 2 – Services Agreement Ward: All Synopsis of Previous Council Actions: On September 20, 2018 the Mayor and City Council adopted Resolution No. 2017-183, approving a Service Agreement with the San Bernardino Chamber of Commerce. 8/31/2018 9:28 AM 24.a Packet Pg. 861 Attachment: PR.Route 66 2018-Staff report (5722 : Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back RESOLUTION NO. 2018-252 REVIEW, DISCUSS AND PROVIDE DIRECTION IN RESPONSE TO THE REQUEST FOR A FEE WAIVER IN THE AMOUNT OF $39,834 FOR THE SAN BERNARDINO CHAMBER OF COMMERCE RENDEZVOUS BACK TO ROUTE 66 2018 EVENT, AND ADOPT RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SAN BERNARDINO CHAMBER OF COMMERCE TO PROVIDE SUPPORT SERVICES FOR RENDEZVOUS BACK TO ROUTE 66 2018 EVENT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager is hereby authorized to execute an agreement between the San Bernardino Area Chamber of Commerce and the City of San Bernardino for City support services at the 2018 Rendezvous Back to Route 66 event on October 6, 2018. SECTION 2. That the authorization granted hereunder shall expire and be void of no further effect if the agreement is not executed by both parties and returned to the office of the City Clerk within sixty (60) days following the effective date of the resolution. /// /// /// /// /// /// /// /// /// 1 24.b Packet Pg. 862 Attachment: PR.Route 66 Resolution 2018 (5722 : Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back to RESOLUTION NO. 2018-252 REVIEW, DISCUSS AND PROVIDE DIRECTION IN RESPONSE TO THE REQUEST FOR A FEE WAIVER IN THE AMOUNT OF $39,834 FOR THE SAN BERNARDINO CHAMBER OF COMMERCE RENDEZVOUS BACK TO ROUTE 66 2018 EVENT, AND ADOPT RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SAN BERNARDINO CHAMBER OF COMMERCE TO PROVIDE SUPPORT SERVICES FOR RENDEZVOUS BACK TO ROUTE 66 2018 EVENT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a ______________________________ meeting thereof, held on the _____ day of ________________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, CMC, City Clerk The foregoing Resolution is hereby approved this _____ day of ________________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: 2 24.b Packet Pg. 863 Attachment: PR.Route 66 Resolution 2018 (5722 : Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back to SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO AREA CHAMBER OF COMMERCE FOR SUPPORT SERVICES TO BE PROVIDED BY CITY FOR THE 2018 RENDEZVOUS BACK TO ROUTE 66 EVENT This Services Agreement is entered into this day of , by and between the San Bernardino Area Chamber of Commerce (“CHAMBER”) and the City of San Bernardino (“CITY” or “San Bernardino”). WITNESSETH: WHEREAS, the Mayor and City Council has determined that it is advantageous and in the best interest of the CITY to contract for providing support services for the 2018 Rendezvous Back to Route 66 event; and NOW, THEREFORE, the parties hereto agree as follows: 1. SCOPE OF SERVICES. CHAMBER hereby engages the services of CITY to provide the following services: Police Services from 8:30 a.m. to 9:30 p.m. for general public safety including: fixed post and traffic deployment; Command Post coverage; motorcycle officers; and marked and unmarked units. Parks, Recreation and Community Services including setting up trash boxes throughout the event; trash pick-up during the event; restocking of bathrooms (porta pots); provide 6 large coolers of ice; provide tables, chairs, and the setup/take down of event tent; order the roll off bins for the event; fence off Court Street Square for the Beer Garden; provide generators to two stages and event vendors with previously identified electrical need; and delivery of products to the Beer Gardens. Public Works services including: street closures; installation of temporary “No Parking Zones” and barricades; providing access to Carousel Mall parking structure, southeast surface lot, the City Hall parking structure and Court Street Square and the parking lot; street cleaning; right of way cleanup prior to the event; and access to the conference room in the 201 building from 8:00 a.m. to 10:00 p.m. for usage as a volunteer break room. 3. TERM; TERMINATION. The term of this Agreement shall be for October 6, 2018. This Agreement may be terminated at any time by thirty (30) days’ written notice by either party. The terms of this Agreement shall remain in force unless mutually amended. The duration of this Agreement may be extended with the written consent of both parties. 4. INDEMNITY. CHAMBER agrees to and shall indemnify and hold the City, its elected officials, employees, agents or representatives, free and harmless from all claims, actions, damages and liabilities of any kind and nature arising from bodily injury, including death, or property damage, 1 24.c Packet Pg. 864 Attachment: PR.Route 66 Agreement 2018 (5722 : Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back to based or asserted upon any actual or alleged act or omission of CHAMBER, its employees, agents, or subcontractors, relating to or in any way connected with the accomplishment of the work or performance of services under this Agreement, unless the bodily injury or property damage was actually caused by the sole negligence of the City, its elected officials, employees, agents or representatives. As part of the foregoing indemnity, CHAMBER agrees to protect and defend at its own expense, including attorney’s fees, the City, its elected officials, employees, agents or representatives from any and all legal actions based upon such actual or alleged acts or omissions. CHAMBER hereby waives any and all rights to any types of express or implied indemnity against the City, its elected officials, employees, agents or representatives, with respect to third party claims against the CHAMBER relating to or in any way connected with the accomplishment of the work or performance of services under this Agreement. 5. INSURANCE. While not restricting or limiting the foregoing, during the term of this Agreement, CHAMBER shall maintain in effect policies of comprehensive public, general and automobile liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory worker’s compensation coverage, and shall file copies of said policies with the CITY’s Risk Manager prior to undertaking any work under this Agreement. CITY shall be set forth as an additional named insured in each policy of insurance provided hereunder. The Certificate of Insurance furnished to the CITY shall require the insurer to notify CITY at least 30 days prior to any change in or termination of the policy. 6. NOTICES. Any notices to be given pursuant to this Agreement shall be deposited with the United States Postal Service, postage prepaid and addressed as follows: TO THE CITY: TO THE CHAMBER: Jim Tickemyer-Director Judi Penman 290 North “D” Street 546 W. 6th Street San Bernardino, CA 92418 San Bernardino, CA 92410 Telephone: (909) __________ Telephone: (909) 384-9979 7. ATTORNEYS’ FEES In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions hereof. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of the CITY shall be considered as “attorneys’ fees” for the purposes of this paragraph. 8. ASSIGNMENT. 2 24.c Packet Pg. 865 Attachment: PR.Route 66 Agreement 2018 (5722 : Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back to CHAMBER shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of the CHAMBER’s interest in this Agreement without CITY’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for the termination of this Agreement. Regardless of CITY’s consent, no subletting or assignment shall release CHAMBER of CHAMBER’s obligation to perform all other obligations to be performed by CHAMBER hereunder for the term of this Agreement. 9. VENUE. The parties hereto agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated either in the State courts located in the County of San Bernardino, State of California or the U.S. District Court for the Central District of California, Riverside Division. The aforementioned choice of venue is intended by the parties to be mandatory and not permissive in nature. 10. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 11. SUCCESSORS AND ASSIGNS. This Agreement shall be binding on and inure to the benefit of the parties to this Agreement and their respective heirs, representatives, successors, and assigns. 12. HEADINGS. The subject headings of the sections of this Agreement are included for the purposes of convenience only and shall not affect the construction or the interpretation of any of its provisions. 13. SEVERABILITY. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 17. REMEDIES; WAIVER. All remedies available to either party for one or more breaches by the other party are and shall be deemed cumulative and may be exercised separately or concurrently without waiver of any other remedies. The failure of either party to act in the event of a breach of this Agreement by the other shall not be deemed a waiver of such breach or a waiver of future breaches, unless such waiver shall be in writing and signed by the party against whom enforcement is sought. 18. ENTIRE AGREEMENT; MODIFICATION. This Agreement constitutes the entire agreement and the understanding between the parties, and supersedes any prior agreements and understandings relating to the subject matter of 3 24.c Packet Pg. 866 Attachment: PR.Route 66 Agreement 2018 (5722 : Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back to this Agreement. This Agreement may be modified or amended only by a written instrument executed by all parties to this Agreement. IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and date set forth below. Dated: ____________, 2018 CHAMBER. By: ___________________________ Its: ___________________________ Dated ____________, 2018 CITY OF SAN BERNARDINO By:___________________________ Andrea M. Miller, City Manager Approved as to Form: Gary D. Saenz, City Attorney By: ______________________ 4 24.c Packet Pg. 867 Attachment: PR.Route 66 Agreement 2018 (5722 : Service Agreement with San Bernardino Chamber of Commerce for 2018 Rendezvous Back to 25.a Packet Pg. 868 Attachment: PR.Citywide Events Update Staff ReportAgenda Report Veterans Day updated 08-28-18docx (5719 : City of San Bernardino City and Veterans Resource Fair. Additionally, this year’s event will include a 9/11 display secured by San Bernardino County Fire, T-34 aircraft flyover, 6 food vendors and various military related merchandise vendors. A new parade route has been established and will be starting in front of the Police Station at 7th and D Street. The parade will proceed south on D Street, east on 3rd Street, south on Sierra Way finishing at Meadowbrook Park. The parade will start at 11:00 a.m. (when the Santa Fe whistle sounds) and the event ceremony will be held from 12:30 p.m. to 2:30 p.m. The DAV approached the Veterans Day Salute and Parade committee requesting to allow the food vendors and car show participants to contribute to fund raising efforts in support of the Federal Women’s Cancer Society. The proceeds will assist female veterans in receiving the screening appointments necessary for early detection in an effort to decrease existing mortality rates. Currently, DAV Chapter 12 serves the San Bernardino area and is a nonprofit charity that provides a lifetime of support for veterans of all generations and their families. This organization helps more than 1 million veterans each year. The organization provides nearly 615,000 rides for veterans attending medical appointments and assists veterans with more than 250,000 benefit claims, annually. In 2017, DAV, on a national level, helped attain more than $4 billion in new and retroactive benefits to care for veterans, their families and survivors. DAV is also a leader in connecting veterans with meaningful employment, hosting job fairs and providing vital resources to all veterans. With almost 1,300 chapters and more than 1 million members across the country, DAV empowers our nation’s heroes and their families by helping to provide the resources they need and ensuring access to all available benefits. The total City cost for the 2017 Veterans Day Salute & Parade totaled $25,834.41. The breakdown is as follows: Police Department $3,000 paid by outside organization Public Works $1,989.68 Parks, Recreation & Community Services Department $20,844.73 ($6,067.73-staff costs; $14,777 in materials, supplies, rentals, and contracted services) The partnership with DAV will enhance the event through the contributions of securing and paying for live entertainment bands, trophies for the car show, event t-shirts, a potential second flyover for the event, and potentially securing the mobile Vietnam Memorial Wall as an additional display. DAV is requesting to raise funds at this year’s event, through the car show and vendors—asking registrants to provide a $25 donation for car show registration and a $40 donation food and merchandise vendors in lieu of registration fees. 8/31/2018 9:28 AM 25.a Packet Pg. 869 Attachment: PR.Citywide Events Update Staff ReportAgenda Report Veterans Day updated 08-28-18docx (5719 : City of San Bernardino City The partnership with DAV does not impact the adopted FY 2018-19 budget. Through this partnership, however, DAV will assist the City in enhancing the services and components currently offered to event participants/attendees and the community, and will promote continued growth and expansion of the event. The services being provided by the City of San Bernardino for this year’s event are: Police Department: Provide services from 8:00 a.m. to 3:00 p.m. during the event for general public safety; fixed post and traffic deployment; and staffed road closures to main streets during the parade route and around the park for event ceremony. The estimated cost is $3,076.22. Parks, Recreation & Community Services: Event organization and coordination; parade organization, registration, and staging; order and place portable restrooms and restocking of the bathrooms; organization of the ceremony; set up trash boxes throughout event; trash pickup during event – replacing trash liners; provide tables, chairs, and setup/take down of event; order decorations and decorate the park; event printing and event marketing; execute facility reservations with San Bernardino County for event parking. The estimated cost is $25,669.03. Public Works: Street closures; install temporary No Parking Zones; stage traffic control; setup and maintain traffic control; removal of temporary No Parking Zones and Barricades; operation of the Santa Fe Whistle. The estimated cost is $2,089.16. The year’s total estimated costs, as described above, will be approximately $30,834.41 (increase of $5,000) which has been included in the FY 2018/19 adopted budget for the Veterans Day Salute & Parade. This is an increase over last year’s event budget due to relocation, which will require a stage rental, and increased cost associated with expansion of the event. Winter Wonderland Parks and Recreation is planning the annual Winter Wonderland 2018 in collaboration with the San Bernardino YMCA to simultaneously host the events to better serve the community. This year’s event will be held on Saturday, December 8, 2018 at Perris Hill Park (parade starts at 10:00 a.m. and Winter Wonderland from 11:00 am to 6:00 p.m.). The event will include the 41st Annual Christmas Parade starting at 10:00 a.m., a 60-ton snow hill, food and merchandise vendors, live entertainment, public safety displays, kids activities, tree lighting ceremony, and toy give away. The department is working on securing a race car derby demo/display where kids will get to ride derby cars. The planning committee for Winter Wonderland is made of; Various City departments, The YMCA, Friends of CID, Unidos Por La Musica, and community members. In 2017 the City’s costs totaled $52,591.44 for Winter Wonderland. The breakdown is as follows: 8/31/2018 9:28 AM 25.a Packet Pg. 870 Attachment: PR.Citywide Events Update Staff ReportAgenda Report Veterans Day updated 08-28-18docx (5719 : City of San Bernardino City Police Department $4,600 Public Works $1,889.68 Parks, Recreation & Community Services $46,476.76 ($16,476.76-staff costs; $29,625 for materials, supplies, rentals, and contracted services) The services being provided by the City of San Bernardino for this year’s event are: Police Department: Provide services from 10:00 a.m. to 6:00 p.m. during the event for general public safety; fixed post and traffic deployment; and staffed road closures to main streets during the parade route and around the park for event ceremony. The YMCA pays for the Police Department services that are needed for the parade and street closures. The estimated cost is $4,830. Parks, Recreation & Community Services: Event organization and coordination; order and place portable restrooms and restocking of the bathrooms; organization of the tree ceremony; set up trash boxes throughout event; trash pickup during event – replacing trash liners; provide tables, chairs, and setup/take down of event; order decorations and decorate the park; event printing and event marketing. The estimated cost is $48,580.84. Public Works: Street closures; install temporary No Parking Zones; stage traffic control; setup and maintain traffic control; removal of temporary No Parking Zones and Barricades. The estimated cost is $2,089.16. This year’s total estimated costs will be approximately $55,500 (increase of $2,908.56) which has been included in the FY 2018/19 adopted budget for Winter Wonderland; this is an increase from last year’s event due to an increase in the cost of the snow hill, and the purchase of additional decorations for expansion of the event. Discussion The partnership with DAV will enhance the event through the contributions of securing and funding for live entertainment bands, trophies for the car show component, event t-shirts, a potential second flyover for the event, and possible securing of the mobile Vietnam Memorial Wall for display. DAV is requesting to raise funds at this year’s event, through the car show and vendors—asking registrants for a $25 donation for car show registration and a $40 donation for food and merchandise vendors. The funds raised will support the Federal Women’s Cancer Society to assist female veterans, obtaining critical services needed to assist in treatment. The partnership does not impact the adopted FY 2018-19 budget. Through this partnership however, DAV will assist the City in enhancing the services and components that are currently offered to event participants/attendees and the community, and will also assist the events continued growth and notoriety. 2018-19 Goals and Objectives 8/31/2018 9:28 AM 25.a Packet Pg. 871 Attachment: PR.Citywide Events Update Staff ReportAgenda Report Veterans Day updated 08-28-18docx (5719 : City of San Bernardino City The request for this partnership aligns with Goal No. 7: Pursue City Goals and Objectives by working with other agencies. This partnership will allow us to work with a government agency that works towards benefitting the disabled veterans within our City and community. Fiscal Impact The Parks, Recreation and Community Services Department has sufficient funding in the FY 2018-19 adopted budget in the current departmental General Fund budget to support the Veterans Day Salute & Parade event in the amount of $30,835 and Winter Wonderland & Christmas Parade in the amount of $55,500. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino discuss and provide direction related to the Veterans Day Salute & Parade and Winter Wonderland 2018 Events specifically related to Disabled American Veterans. Attachments Attachment 1 – DAV Letter of Intent to raise funds for Federal Women’s Cancer Ward: All 8/31/2018 9:28 AM 25.a Packet Pg. 872 Attachment: PR.Citywide Events Update Staff ReportAgenda Report Veterans Day updated 08-28-18docx (5719 : City of San Bernardino City 25.b Packet Pg. 873 Attachment: PR.Citywide Events Update DAV LOI Exhibit A (5719 : City of San Bernardino City Wide Events Planning Updates for Veterans Day 26.a Packet Pg. 874 Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Staff Report (5716 : Establish Compensation and Benefits for Discussion The Elected Official Compensation Advisory Commission met on five (5) occasions to discuss the setting of compensation and benefits for the Mayor and City Council:  June 26, 2018  August 13, 2018  July 12, 2018  August 27, 2018  July 23, 2018 The Commission reviewed comprehensive data compiled by staff, studied facts, figures and comparisons. The goal was to develop appropriate salary and benefits recommendations for City-elected officials, while remaining cognizant of the fiscal impact to the City. Regarding mayoral compensation, salary and benefits data were collected from the following California charter cities with full-time mayors: 1. Chula Vista 2. Long Beach 3. National City 4. Oakland 5. Riverside 6. San Diego 7. San Jose Although San Bernardino’s total mayoral compensation (salary + benefits) is below the average of those seven cities ($118,306 vs. $149,887), Commissioners concluded that the current mayoral compensation is reasonable, especially given that most of those cities are much larger than San Bernardino. Accordingly Commissioners generally agreed that the current mayoral salary formula has worked reasonably well. On July 23, 2018, the Elected Official Compensation Advisory Commission voted 8-1 in favor of the following recommendation for the Mayor’s salary effective January 1, 2019: o Establish Mayor’s salary at 50% of the salary of a Superior Court Judge in County of San Bernardino, adjusted and implemented January 1 of each subsequent year o Employer benefit contribution tied to Management Employees o Auto Allowance to continue at $725 per month 8/31/2018 9:27 AM 26.a Packet Pg. 875 Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Staff Report (5716 : Establish Compensation and Benefits for Recommended Mayor’s Salary and Benefits Effective January 1, 2019 Annual Amount Comments Annual Salary $102,912 Fifty percent (50%) of the salary of a Superior Court Judge in County of San Bernardino, subject to annual adjustment to be implemented January 1 of each subsequent year Employer Health Benefits Contribution $14,340 Employer health benefits contribution equivalent to that offered by the City to management employees Auto Allowance $8,700 Monthly auto allowance of $725 per month TOTAL: $125,952 Compared to current total of $118,306 Regarding Council compensation, salary and benefits data were collected from twelve (12) nearby cities with part-time Councils: 1. Chino 2. Corona 3. Fontana 4. Moreno Valley 5. Ontario 6. Pomona 7. Rancho Cucamonga 8. Redlands 9. Rialto 10. Riverside 11. Victorville 12. West Covina (Pomona, Riverside, and Victorville are charter cities, the remainder are general law cities). Average Council salary for the twelve (12) comparison cities is $14,951 compared to San Bernardino’s annual Council salary of $600. The Commission concluded that the City Council salaries should be increased substantially. Average Council benefits for the twelve (12) comparison cities is $19,500 compared to $22,500 for San Bernardino Council. The major difference is that San Bernardino’s monthly auto allowance is substantially higher than in all twelve (12) comparison cities. The Commission presumed that the large difference in the auto allowance may have emerged over the years to compensate to some degree for the fact that Council salary has been fixed at $50 per month since 1955. Average total Council compensation for the twelve (12) cities is $34,452 compared to $23,100 for San Bernardino. The Commission concluded that the City Council total compensation should be increased substantially to help ensure that qualified individuals are not discouraged from seeking office. 8/31/2018 9:27 AM 26.a Packet Pg. 876 Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Staff Report (5716 : Establish Compensation and Benefits for On August 13, 2018, the Elected Official Compensation Advisory Commission voted 8-1 in favor of the following recommendation for City Council members’ salary effective January 1, 2019:  Set each City Council member’s salary at $14,000 per year. Annual salary does not adjust automatically on an annual basis.  Employer benefit contribution tied to Management Employees  Auto Allowance of $500 per month Recommended City Council’s Salary and Benefits Effective January 1, 2019 Annual Amount Comments Annual Salary $14,000 $14,000 per year aligns with the average of salaries surveyed and equals approximately 1/7 of the Mayor's salary Employer Health Benefits Contribution $14,340 Employer health benefits contribution equivalent to that offered by the City to management employees Auto Allowance $6,000 Reduced amount from $725 per month to $500 per month TOTAL: $34,340 The recommended annual salary is 14,000 per year, which is close to the average of the surveyed comparison cities and equals approximately 1/7 of the Mayor’s salary. The salary will not include automatic increases. The recommended salary for City Council members will also impact CalPERS pension costs. The impact is approximately $10,000 annually and $5,000 for six (6) months. The Elected Official Compensation Advisory Commission recommended compensation and benefits for the Mayor and City Council in good faith. Furthermore, the commission emphasized the importance of compensating elected leaders at levels suitable to attract a diverse talent pool and to provide adequate compensation for this region while serving the City. 2018-19 Goals and Objectives The recommendation to establish salaries for City-elected officials aligns with Goal No. 5: Improve Government Operations. Fiscal Impact The total annual fiscal impact of the proposed changes is an increase to the Legislative Department budget of $113,000. Only one-half of that amount, or $56,500, is required for the balance of the FY 2018/19 budget due to the January 1, 2019 effective date of the proposed changes. The salaries and pension cost accounts would be increased while the auto allowance account would be decreased consistent with the changes noted in the report for the Mayor and City Council members. A resolution approving the budget amendment will be presented to the City Council at the meeting where the second reading and adoption of Ordinance No. MC 1504 are proposed. 8/31/2018 9:27 AM 26.a Packet Pg. 877 Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Staff Report (5716 : Establish Compensation and Benefits for Conclusion Introduce for first reading Ordinance No. MC 1504 of the Mayor and City Council of the City of San Bernardino, California, establishing the salaries for the City-elected officials. Attachments Attachment 1 Proposed Ordinance No. MC 1504 Attachment 2 Mayor Summary Attachment 3 Council Summary Ward: On February 21, 2018, the Elected Official Compensation Advisory Commission was established by Ordinance No. MC-1463. 8/31/2018 9:27 AM 26.a Packet Pg. 878 Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Staff Report (5716 : Establish Compensation and Benefits for ORDINANCE NO. MC 1504 INTRODUCE FOR FIRST READING ORDINANCE NO. MC 1504 OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING COMPENSATION AND BENEFITS FOR THE CITY-ELECTED OFFICIALS WHEREAS, Article XI, Section 5 of the California Constitution authorizes the City of San Bernardino, as a charter city, to provide for the compensation of the Mayor and City Council; and WHEREAS, Mayor and City Council salaries are currently established by Section 24 of the former City Charter; and WHEREAS, Section 305 of the new City Charter adopted by voters on November 8, 2016 and Municipal Code Chapter 2.19 require that compensation for elected officials be adopted by ordinance, after public hearing, and considering the recommendations of an advisory commission; and WHEREAS, on February 21, 2018, the Elected Official Compensation Advisory Commission (the “Commission”) was established by Ordinance No. MC-1463; and WHEREAS, since its establishment, the Commission has met on five occasions to discuss the setting of compensation and benefits for the Mayor and City Council; and WHEREAS, at its July 23, 2018 meeting, after a comprehensive review of data compiled by City staff, the Commission recommended the City Council set the Mayor’s annual salary at its current level of 50% of the salary of a Superior Court Judge in County of San Bernardino and provide for an employer health benefits contribution equivalent to that made available to management employees along with a monthly auto allowance of $725; and WHEREAS, at its August 13, 2018 meeting, the Commission recommended the City Council set each City Council member’s annual salary at $14,000 and provide for an employer health benefits contribution equivalent to that made available to management employees along with a monthly auto allowance of $500; and WHEREAS, in making these recommendations, the Commission emphasized the importance of compensating elected leaders at levels suitable to attract a diverse talent pool and to provide adequate compensation for this region while serving the City. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. 26.b Packet Pg. 879 Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Attachment 1 - Ordinance (5716 : Establish Compensation and Ordinance No. MC 1504 2 SECTION 2. Chapter 2.82 is hereby added to the City of San Bernardino Municipal Code to read, in its entirety, as follows: “ Chapter 2.82 Mayor and City Council Compensation Sections: 2.82.010 Compensation of Mayor 2.82.020 Compensation of City Council Members 2.82.010 Compensation of Mayor Commencing January 1, 2019, the Mayor shall receive the following compensation: A. Annual salary of fifty percent (50%) of the salary of a Superior Court Judge in County of San Bernardino, subject to annual adjustment to be implemented January 1 of each subsequent year; B. Employer health benefits contribution equivalent to that offered by the City to management employees; and C. An auto allowance of $725 per month. The compensation set forth herein shall be paid without regard to the number of City Council meetings attended by the Mayor. The Mayor may waive all or any portion of her or his own compensation. The compensation set forth herein is exclusive of any amounts payable to the Mayor as per day compensation for City business-related travel and further exclusive of any amounts payable to the Mayor for out of town attendance on City-related business. 2.82.020 Compensation of City Council Members Commencing January 1, 2019, each City Council member shall receive the following compensation: A. Annual salary of $14,000; B. Employer health benefits contribution equivalent to that offered by the City to management employees; and C. An auto allowance of $500 per month. The compensation set forth herein shall be paid without regard to the number of City Council meetings attended by the applicable City Council member. Any City Council member may waive all or any portion of her or his own compensation. The compensation set forth herein is exclusive of any amounts payable to a City Council member as per day compensation for City 26.b Packet Pg. 880 Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Attachment 1 - Ordinance (5716 : Establish Compensation and Ordinance No. MC 1504 3 business-related travel and further exclusive of any amounts payable to a City Council member for out of town attendance on City-related business.” SECTION 3. The City Council finds this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15378(b)(4), which provides that the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment are not CEQA projects. Here, this Ordinance provides funding to the Mayor and City Council Members and does not involve any commitment to any specific project that may result in a potentially significant impact on the environment. Moreover, this Ordinance is exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects whic h have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this ordinance are declared to be severable. SECTION 5. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption. Notwithstanding the foregoing, in compliance with Section 305 of the City Charter, the salaries and benefits established herein shall become effective on January 1, 2019. SECTION 6. Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the Town in a manner permitted under section 36933 of the Government Code of the State of California. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________, 2018. R. Carey Davis, Mayor City of San Bernardino Attest: __________________________________ Georgeann Hanna, CMC, City Clerk Approved as to form: __________________________________ Gary D. Saenz, City Attorney 26.b Packet Pg. 881 Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Attachment 1 - Ordinance (5716 : Establish Compensation and Ordinance No. MC 1504 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Georgeann Hanna, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. _____, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ____ day of _______, 2018. Ordinance No. _____ was approved, passed and adopted at a regular meeting held the ___ day of _______, 2018 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2018. ______________________________ Georgeann Hanna, CMC, City Clerk 26.b Packet Pg. 882 Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Attachment 1 - Ordinance (5716 : Establish Compensation and ATTACHMENT 2 Agency Status Annual Base Salary (Max) *Estimated Employer Paid Benefits Package (Annual) Estimated Total Employer Cost (Salary & Benefits)City Population Median Household Income 1 City of Chula Vista - Charter City Full-time 126,464.00$ $ 29,389.92 $ 155,853.92 267,172 68,699.00$ 2 City of Long Beach - Charter City Full-time 142,680.00$ $ 25,321.08 $ 168,001.08 470,130 60,075.00$ 3 City of National City - General City Full-time 54,385.56$ $ 23,400.00 $ 77,785.56 61,147 42,178.00$ 4 City of Oakland - Charter City Full-time 229,222.05$ $ 28,986.60 $ 258,208.65 420,005 68,060.00$ 5 City of Riverside - Charter City Full-time 82,764.00$ $ 23,423.04 $ 106,187.04 327,728 63,548.00$ 6 City of San Diego - Charter City Full-time 100,464.00$ $ 27,371.00 $ 127,835.00 1.407 M 71,481.00$ 7 City of San Jose - Charter City Full-time 128,750.00$ $ 26,585.88 $ 155,335.88 1.025 M 101,940.00$ $123,532.80 $ 26,353.93 $149,886.73 City of San Bernardino - Charter City Full-time $ 95,805.96 $ 22,500.00 $ 118,305.96 216,995 $ 39,472.00 Survey 2018 Mayor: Summary AVERAGE: *Total Estimated Employer Paid Benefits includes health contribution, auto allowance, cell phone allowance, & deferred compensation where applicable.26.cPacket Pg. 883Attachment: HR.Establish Compensation and Benefits for City-Elected Officialss - Attachment 2 - Mayor Summary (5716 : Establish ATTACHMENT 3 Agency General or Charter City How is the City Council's Salary Determined?Annual Base Salary (Max) *Estimated Employer Paid Benefits Package (Annual) Estimated Total Employer Cost (Salary & Benefits) City Population **Median Household Income 1 Chino General Set by Ordinance No. 2008-20 in accordance with Government Code 36516 Part 1. General section (a)(4). $ 15,372.00 $ 26,352.00 $ 41,724.00 89,797 $ 68,666.00 2 Corona General Set by Ordinance No. 1738 in accordance with Government Code 36516 Part 1. General section (a)(2)(E). $ 9,600.00 $ 11,363.04 $ 20,963.04 168,836 $ 71,584.00 3 Fontana General Set by Ordinance No. 1571 in accordance with Government Code 36516 Part 1. General section (a)(4). $ 14,040.00 $ 26,469.96 $ 40,509.96 211,815 $ 66,073.00 4 Moreno Valley General Set by Ordinance No. 722 in accordance with Government Code 36516 Part 1. General section (a)(4). $ 13,212.00 $ 24,420.00 $ 37,632.00 207,226 $ 64,008.00 5 Ontario General Set by Ordinance No. 2987 in accordance with Government Code 36516 Part 1. General section (a)(4). $ 20,529.60 $ 25,989.24 $ 46,518.84 175,841 $ 55,982.00 6 Pomona Charter Set by Ordinance No. 4193 in accordance with Government Code 36516 Part 1. General section (a)(2)(E). Per Charter, salaries may also be increased each calendar year by an amount equal to the inflationary change listed in the Consumer Price Index (CPI-U) for the metropolitan Los Angeles-Anaheim-Riverside area published annually by the United States Bureau of Labor Statistics. $ 9,828.00 $ 9,300.00 $ 19,128.00 152,939 $ 53,972.00 7 Rancho Cucamonga General Set by Ordinance No. 870 in accordance with Government Code 36516 Part 1. General section (a)(4). $ 15,716.76 $ 13,200.00 $ 28,916.76 177,452 $ 81,286.00 8 Redlands General Set by Ordinance No. 1903 in accordance with Government Code 36516 Part 1. General Section (a)(2)(C). $ 6,000.00 $ 10,800.00 $ 16,800.00 71,554 $ 72,094.00 9 Rialto General Set by Ordinance No. 1437 in accordance with Government Code 36516 Part 1. General section (a)(4). $ 13,248.00 $ 25,233.24 $ 38,481.24 103,562 $ 53,582.00 10 Riverside Charter Set by Ordinance No. 7279. Per Charter, any increase may not exceed 5% of their existing salary every odd-numbered year. $ 41,376.00 $ 21,623.04 $ 62,999.04 327,728 $ 63,548.00 11 Victorville Charter Set by Ordinance No. 2180. Per Ordinance No.2017 any increase may not exceed an amount equal to 5% for each calendar year from the operative date of the last adjustment. $ 11,313.84 $ 12,000.00 $ 23,313.84 122,441 $ 48,065.00 12 West Covina General Set by Ordinance No. 1830 in accordance with Government Code 36516 Part 1. General section (a)(4). $ 9,180.00 $ 27,252.24 $ 36,432.24 107,598 $ 74,076.00 $ 14,951.35 $19,500.23 $34,451.58 City of San Bernardino Charter Advisory Commission recommends compensation and salaries must be established by Ordinance after Public Hearing $ 600.00 $ 22,500.00 $ 23,100.00 216,995 $ 39,472.00 Survey 2018 Part-Time City Council: Summary AVERAGE: *Total Estimated Employer Paid Benefits includes health contribution, auto allowance, cell phone allowance, & deferred compensation where applicable.26.dPacket Pg. 884Attachment: HR.Establish Compensation and Benefits for City-Elected Officials - Attachment 3 - City Council Summary (5716 : Establish 27.a Packet Pg. 885 Attachment: FN.Arrowhead Grove TEFRA.Report (5710 : Resolution of the Mayor and City Council of the City of San Bernardino Pursuant to limited obligations of HACSB payable solely by the Borrower, and will not be direct obligations of HACSB, the County, or the City. HACSB is not permitted to issue private activity bonds or notes for a project without first conducting a TEFRA public hearing and obtaining permission from the governing board of the jurisdiction in which the project is located, in this case the Mayor and City Council for the City of San Bernardino. Discussion The purpose of this TEFRA hearing is to receive public comment and request approval of the financing, as required by the Internal Revenue Code of 1986, as amended. City of San Bernardino Economic and Housing Development staff has properly noticed this public hearing and legal counsel has assisted in the preparation of the attached resolution for approval. The City is the appropriate entity to conduct a public hearing and approve the issuance of the Bonds and the use of the proceeds of the Bonds pursuant to Section 147(f) of the Internal Revenue Code before the Bonds can be issued as tax-exempt obligations. In this case, the Borrower requested that HACSB serve as bond issuer, and therefore HACSB now seeks approval of the City Council on behalf of the Project. The Bonds will be issued in an amount not to exceed $60,000,000. The source of repayment of the Bonds will be limited to payments made by the Borrower to HACSB or its agent/trustee. The City is not liable in any way for repayment of the Bonds. 2018/19 Goals and Objectives Approving the issuance of bonds by the Housing Authority of the County of San Bernardino for the Arrowhead Grove Phase II & III Project, aligns with Goal No. 4: Ensuring Development of a Well-Planned, Balanced and Sustainable Community and Goal No. 7: Pursue City Goals and Objectives by Working with Other Agencies. Fiscal Impact There is no fiscal impact to the City for conducting a TEFRA public hearing and adopting a resolution for the issuance of tax-exempt revenue bonds by HACSB. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2018-253 approving the issuance of bonds by the Housing Authority of the County of San Bernardino for the Arrowhead Grove Phase II & III Project. Attachments Attachment 1 Resolution Approving Issuance of Bonds by HACSB Attachment 2 Public Hearing Notice Ward: 1 Synopsis of previous City Council actions: None 8/31/2018 9:19 AM 27.a Packet Pg. 886 Attachment: FN.Arrowhead Grove TEFRA.Report (5710 : Resolution of the Mayor and City Council of the City of San Bernardino Pursuant to RESOLUTION NO. 2018-253 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986 APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE COUNTY OF SAN BERNARDINO FOR THE ARROWHEAD GROVE PHASE II & III PROJECT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Housing Authority of the County of San Bernardino (the “Authority”) intends to issue not to exceed $60,000,000 aggregate principal amount of multifamily housing revenue bonds (the “Bonds”) to finance the acquisition, construction and equipping of a 184 unit multifamily rental housing development to be located at the Southeast corner of Waterman Avenue and Baseline Street, in the City of San Bernardino, County of San Bernardino, California described in the notice of public hearing attached as Exhibit A hereto (the “Project”); and WHEREAS, in order for interest on the bonds to be tax-exempt, Section 147(f) of the Internal Revenue Code of 1986 requires that the Bonds be approved by the City Council as the applicable elected representatives after a public hearing following reasonable public notice; and WHEREAS, notice of a public hearing with respect to the proposed issuance of the bonds was published in a newspaper of general circulation in the City on August 4, 2018; and WHEREAS, the public hearing was held on the date hereof, and an opportunity was provided for interested persons to express their views on the issuance of the Bonds and on the nature and location of the Project. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City does not warrant the creditworthiness of the Bonds or guarantee, in any way, the payment of the Bonds. No moneys of the City will be pledged or applied to the repayment of the Bonds or make any representations with respect to the Bonds. 1 27.b Packet Pg. 887 Attachment: FN.Arrowhead Grove TEFRA.Resolution (5710 : Resolution of the Mayor and City Council of the City of San Bernardino Pursuant RESOLUTION NO. 2018-253 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986 APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE COUNTY OF SAN BERNARDINO FOR THE ARROWHEAD GROVE PHASE II & III PROJECT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 2. This City Council, as the applicable elected representatives under Section 147(f) of the Code, approves the issuance of the Bonds by the Authority with respect to the Project. /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// 2 27.b Packet Pg. 888 Attachment: FN.Arrowhead Grove TEFRA.Resolution (5710 : Resolution of the Mayor and City Council of the City of San Bernardino Pursuant RESOLUTION NO. 2018-253 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986 APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE COUNTY OF SAN BERNARDINO FOR THE ARROWHEAD GROVE PHASE II & III PROJECT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a ____________ meeting thereof, held on the _______ day of __________________, 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ _____ _____ _______ _______ BARRIOS _____ _____ _______ _______ VALDIVIA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ Georgeann Hanna, City Clerk The foregoing Resolution is hereby approved this ________ day of ______________, 2018. R. Carey Davis, Mayor City of San Bernardino Approved as to form: Gary D. Saenz, City Attorney By: _________________________ 3 27.b Packet Pg. 889 Attachment: FN.Arrowhead Grove TEFRA.Resolution (5710 : Resolution of the Mayor and City Council of the City of San Bernardino Pursuant CALIFORNIA NEWSPAPER SERVICE BUREAU SBS# D A I L Y J O U R N A L C O R P O R A T I O N To the right is a copy of the notice you sent to us for publication in the SAN BERNARDINO COUNTY SUN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com Candice Alvarez SAN BERNARDINO CITY CLERK 300 NORTH D ST., 2ND FLR SAN BERNARDINO, CA 92418 HRGSB NOTICE OF HEARING-SB NOTICE OF PUBLIC HEARING 08/04/2018 Publication Total $200.20 $200.20 Notice Type: Ad Description COPY OF NOTICE 3159864 !A000004824595! The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on Wednesday,September 5,2018,at the hour of 5:00 p.m.at the City of San Bernardino Council Chambers,201 North “E”Street,San Bernardino,California,will hold a public hearing in accordance with Section 147(f)of the Internal Revenue Code of 1986 with respect to the proposed issuance by the Housing Authority of the County of San Bernardino of its multifamily housing revenue bonds in an aggregate principal amount not to exceed $60,000,000,in order to finance the acquisition,construction and equipping of a 184-unit multifamily rental housing development and a functionally related and subordinate multi-purpose community building,to be located on approximately eight acres of property at the Southeast corner of Waterman Avenue and Baseline Street,in the City of San Bernardino,County of San Bernardino,California,described below: Name:Arrowhead Grove Phase II &III Location:Southeast corner,Waterman Avenue and Baseline Street,San Bernardino,CA Number of Units:184 Maximum Bond Amount:$60,000,000 The owner or operator of the Project will be a limited partnership of which National Community Renaissance of California,a California nonprofit public benefit corporation (“National CORE”), or an affiliate of National CORE,will be the managing general partner.A total of not less than 146 units in the project are to be income and rent restricted with such 76 units to be occupied by families at or below very low-income at affordable rents.However,due to tax credits or other considerations,the number of income and rent restricted units may be increased. Notice is further given that at said hearing all interested parties will have an opportunity to be heard on the question of whether or not such multifamily housing revenue bonds should be issued.If you have any questions regarding the public hearing, please contact Kathy Brann,Economic Development and Housing Director,at (909)384-7257. 8/4/18 SBS-3159864# 27.c Packet Pg. 890 Attachment: FN.Arrowhead Grove TEFRA Hearing Notice for Arrowhead Grove (5710 : Resolution of the Mayor and City Council of the City of